Some Highlights of the 2009 Bush Budget

"Discretionary spending” is funded at $15 billion less than inflation.
("Discretionary spending" is renewed yearly, like defense, education, transportation etc, as opposed to “entitlement spending" on programs like Social Security, Medicare, etc)

20 States are expecting shortfall totaling $35 billion in 2009, 8 other states expect problems.
(California's shortfall is almost half of the national shortfall.)

Military:

• It's the biggest military budget since WWII, and does not include Iraq/Afghanistan or nukes.
  (Read NY Times article: Military spending to continue at current rate even after Iraq, to rebuild military for future wars)

• Iraq/Afghanistan's total cost is $1 - 3 trillion, compared with $10 trillion total debt.
  (Read "Medical and disability costs for returning vets could be higher than costs of combat itself."

Housing:

• Cut 100,000 Section 8 rent vouchers for the very poor

• Cut budget for poor seniors 27%

• Cut budget for disabled people 32%

• Cut budget for repair, maintenance of public housing 17%

• Eliminate budget for repair, maintenance of public housing damaged by disaster

• Cut budget for abatement of lead hazards 20%

• Cut block grants to States and Cities for housing and community development 18%

• Cut low-income energy assistance 18%

• Eliminate HUD rural housing

• No COLA for housing assistance for homeless or people with AIDS

Medicare

• Total of $178 billion in Medicare cuts over next 5 years.

• Private Medicare plans (Medicare Advantage, 13% higher than regular) not cut.
  Extra payment costs Medicare $50 billion over next 5 years.

• 0.4% payment cuts to docs, clinics, hospitals for each year that general funds pay 45% of Medicare costs (i.e. for the foreseeable future.)

• $17 billion cut in Medicare help to nursing homes over 5 years by eliminating COLA

Medicaid

• Last year’s HHS rule changes  makes total of $15 billion  Medicaid cuts over next 5 years,

• This shifts costs to state, local governments, themselves with reduced revenues.

• Rules also divert money from safety-net hospitals to vouchers for private insurance.