WASHINGTON — President Bush wants to cut funding for teaching hospitals and freeze medical research in a $3 trillion budget for 2009 that is still likely to generate a record deficit once war costs are tallied up.
The Bush budget to be submitted Monday would cut the budget for the Health and Human Services Department by $2 billion, or 3 percent. By contrast, the Pentagon would get a $35 billion increase to $515 billion for core programs, with war costs additional.
With tax revenues falling as the economy slows — and with the deficit-financed economic stimulus bill adding more than $150 billion in red ink to federal ledgers over 2008-2009 — the White House acknowledges that the budget deficit for this year and next is projected to reach $400 billion or more.
The largest-ever budget deficit, $413 billion, was recorded in 2004. Bush’s budget will forecast a deficit for 2009 that’s below that, an administration official said. But that assumes costs of $70 billion for the wars in Iraq and Afghanistan, well below the almost $200 billion request for this year.
Even if a Democrat is elected president and begins troop withdrawals, tens of billions of dollars more will be needed, which would bring the deficit well above the $413 billion record.
And if the economy slides into recession, deficits would grow ever higher. The Bush budget predicts gross domestic product growth of 2.9 percent for 2008, an administration official said, much higher than private sector economists predict. If growth doesn’t meet administration expectations, the deficit would spike higher as tax revenues fall even more.
Lee ASKS: First the DEMS say, “our military is strapped,” then Bill Says, “The economy must be cooled down.” Bill screwed the military and Bush’s tax cuts pulled us out of a CLINTON RECESSION! What gives? To boot, the Dems keep on their PORK binge!
