Issues to Think About When the President Delivers State of the Union Address.
On Wednesday evening, the President is scheduled to deliver his annual State of the Union Address before a joint session of Congress as the nation watches live on TV. The President delivers his address amidst an economic crisis which is compelling Americans to look to the President to provide specific and directed policy initiatives that will help create more jobs and bolster the country’s economy. After a severe and protracted defeat of the health care reform legislation, combined with the retirements of several key Democrats who were up for reelection in 2010, the nation is poised to hear solutions to real problems facing America’s families. In response, the President has announced that he will seek an immediate freeze on the federal budget as it relates to discretionary spending programs. The President will likely go into detail about this new initiative during his address as well as announce how he intends to pursue policies designed to spark the nation’s stalled economic engine.
As the President’s budget proposal currently stands, the federal budget would amount to $1.3 trillion for Fiscal Year 2010. At the end of 2009, the public-held debt stood at $7.5 trillion, and it is projected to double by 2020 if all laws and policies remain intact. The most recent report issued by the Congressional Budget Office indicates that the American economy will continue its slow climb out of the recession, with low job growth, stagnant growth in the financial markets, and elevated home foreclosures lingering. Federal sources of revenue are expected to increase slightly as several tax provisions expire in 2010, including the Economic Growth and Tax Relief Reconciliation Act of 2001, the Jobs and Growth Tax Relief Reconciliation Act of 2003, and the Making Work Pay tax credit. The $1.3 trillion budget that will be at the center of the President’s address includes $687 billion for national defense ($130 billion in 2010 and another $50 billion a year from 2011 to 2019 for the military operations in Iraq and Afghanistan) and $562 billion for non-defense programs.
The reductions recommended in the President’s budget include discretionary spending in energy (48.8% reduction); education, training, employment, and social services (14.8% reduction); and natural resources and the environment (7.4% reduction). Many federal programs supporting American Indians are discretionary spending measures and would likely be reduced per Obama’s new budget. Some programs which are completely eliminated or reduced under the President’s budget, as well as a list of government departments that will face steep budget reductions, include: public broadcasting grants, the Department of Agriculture, public telecom facilities, the Department of Commerce, rural community facilities, the Department of Health and Human Services, state grants given to establish safe and drug-free schools and communities, the Department of Education, water infrastructure earmarks, the Environmental Protection Agency, work incentive grants, the Department of Labor, and targeted funding for Alaska Native Village infrastructure, ($9 million reduction).
Ultimately, Congress must take into consideration the current economic situation when debating the proposals set forth in the President’s address. Lawmakers will enter the appropriations process with some sobering facts and a policy proposal which will likely force them to play with the hand they have been dealt.
