President Bush submitted his first budget proposal to Congress and the nation Monday. The plan includes several increases in federal subsidies for post-secondary education.
Available student financial aid would expand to $54.9 billion, excluding currently outstanding loans, representing an increase of 5 percent over 2002. The number of recipients of federal student assistance would also grow by 339,000.
Pell Grants, which provide aid to the neediest students, would increase by $549 million.
Under the Bush plan, students and families would save an estimated $4.1 billion in 2003 under the HOPE tax credit, which allows up to $1,500 in tax credit for tuition and fees during the first two years of postsecondary education.
Also included would be $2.4 billion under the Lifetime Learning tax credit, which allows a credit of up to $2,000 per student for tuition fees.
In today’s White House budget briefing, Office of Management and Budget Director Mitch Daniels said the increases were fiscally responsible and consistent with President Bush’s vision for the nation’s education system.
“The Department of Education rose 37 percent two years ago, 24 percent last year,” Daniels said. “At that growth rate, it will eat the entire budget by 2010, so a deceleration is in order. Secretary Paige very much accepts and has stated the view again this week: he’s awash in money — it’s results he doesn’t have. And $50 billion is by far, of course, the largest request ever for the Department of Education.”
The president’s wartime announcement of the 2003 fiscal year budget also reflects his strong support of the U.S. military, as Bush’s proposal would represent the greatest increase in defense spending in 20 years.
In light of the success of the war on terror abroad and the heightened state of alert at home, Bush’s defense budget proposal has met little initial criticism.
“The strong support for the war effort and security at home will not make the war effort the major area of conflict,” said UW political science professor Charles Franklin.
Of the approximately $9.4 billion the president recommends to strengthen U.S. capabilities for fighting the war against terrorism, $3 billion is included specifically targeted for counterterrorism measures and $1.2 billion for continued air patrols over the United States.
A portion of antiterrorism spending includes a fourfold increase in bioterrorism preparedness expenditures.
“Given the threat of anthrax and smallpox, it’s probably a wise thing to do to be a little more prepared in that area,” UW political science professor David Cannon said. “Six months ago, no one would have seen this as a huge threat.” A particularly contentious political element of the budget involves the inclusion of $7.8 billion for missile defense research, testing and procurement. The president’s decision to withdraw from the 1972 Soviet-American ABM treaty in pursuit of a missile defense shield, or “Star Wars,” was prompted by the possibility of successfully implementing this technology.
Also included in the White House proposal is a federal deficit of $106 billion for this year and $80 billion for 2003.
Apart from defense and homeland security, the Bush plan tightens budgets on other agencies in an effort to keep the deficit in check; under this plan, other government expenditures would grow only 2 percent.
The return to deficit operation comes on the heels of four years of federal surplus, although administration officials predict the government will reach black ink again in 2005.
