Budgets are Moral Documents: The 2007 Federal Budget

Written by: Michael Neher on Mar 14, 2006 7:31 PM EST

Budgets are Moral Documents: The 2007 Federal Budget

On Feb. 6, President Bush started the budget process for fiscal year 2007 - which begins Oct. 1, 2006, and ends Sept. 30, 2007 - by sending his $2.77 trillion budget proposal to Congress. His budget cuts domestic program spending by $183 billion during five years. Cuts include nearly $14 billion from Medicaid, $706 million from food stamps, $1 billion from child care support, and $36 billion from Medicare. Military spending would increase by 6.9% to $439 billion, not including an additional $50 billion for war spending in Iraq and Afghanistan. In addition, the president's budget calls for billions of dollars in tax cuts that will benefit the wealthiest Americans.

Noticeably absent from the budget proposal is funding for Iraq and Afghanistan after 2007, as well as the cost of extending relief from the Alternative Minimum Tax after 2006. Moreover, the proposal omits figures for years after 2011. This sidesteps customary budget practice. Ignoring these major expenses intentionally masks the impact of current tax and deficit policies on our long-term stability.

Budget Analysis:

Our Moral Choice by Jim Wallis

Analysis of President Bush's Fiscal Year 2007 Budget Proposal

Frequently Asked Questions and Arguments

The Budget's Bottom Line, by Yonce Shelton.

How will your state will be impacted? by National Priorities.



Information from Advocacy Groups:
Center for American Progress, Brief summary and complete report on the budget.

Center on Budget and Policy Priorities, Detailed summary of the budget's effect on states.

Child Welfare League, The effect of the budget proposal on children, and descriptions of programs that are targeted for cuts.

Children's Defense Fund, Effects of cuts on children's access to health care, education, and other programs.

Coalition on Human Needs, Summaries of the budget, a timeline of the budget process, and tips for advocacy.

Families USA, Analysis of funding for health care, research, and insurance.

Food Research and Action Center, Changes that would take place in nutrition programs.

National Women's Law Center, Impact of the budget on women and girls.



Faith-Based Perspectives on the Budget:
Friends Committee on National Legislation, "On the chopping block are programs that serve the most vulnerable, that advance a more equitable society, that protect the common good, and that prepare our nation for future challenges."

The FCNL Web site includes a way to contact your member of Congress, as well as statements on the budget (www.fcnl.org/budget/...).

The Interreligious Working Group on Domestic Human Needs, "The federal budget remains a fundamental statement of who we are as a nation. The choices we make about how we generate revenues and spend our shared resources reveal our true allegiance."
This coalition of faith organizations has published an updated faith statement on the federal budget.

Lenten Biblical Reflections on the U.S. Budget, Larry Hollar: "[W]e are called to stand with our brothers and sisters who are vulnerable and to speak out to our leaders about the decisions they will make throughout this year."
This set of Lenten reflections from 2005, which includes scripture readings for each Sunday of Lent, remains relevant for this year.

Network, "If development is the new name for peace, war and preparations for war are the major enemy of the healthy development of peoples. If we take the common good of all humanity as our norm, instead of individual greed, peace would be possible" (On Social Concern, Pope John Paul II, 1987, #10). Network, a Catholic Social Justice Lobby, has a summary of the president's budget proposal, as well as a brief timeline with the budget process.



Tax Cuts and the Deficit:
President Bush proposes $285 billion in new tax cuts during five years, and $1.7 trillion in tax cuts during 10 years. If the tax cuts Bush proposes are made permanent, they will provide an estimated $900 billion over the next 10 years to the top 1% of households. When fully in effect, the tax cuts enacted in 2001 and 2003 (including Alternative Minimum Tax relief) will provide an average tax cut of $650 for the middle fifth of households, but of $136,000 for people who make more than $1 million a year (www.cbpp.org).

The administration's own numbers show that the deficit will increase by $192 billion over the next five years. The deficit remains at near record level for fiscal year 2007: $354 billion, (2.6% of the gross domestic product). Deficits would total $760 billion over five years without the budget changes proposed, but would total $952 billion with those policy changes. Although some may argue that cutting domestic spending reduces the deficit, domestic discretionary programs have not contributed to the return of budget deficits. After having been cut in fiscal year 2006, total funding for domestic discretionary programs outside homeland security is lower now as a share of the economy than it was in 2001. Funding for domestic programs has fallen from 3.4% of the GDP in 2001 to 3.1% of the GDP this year.

For more information on taxes and the deficit, click here.

For information on the fiscal year 2006 budget passed recently, click here.

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