The 2009 Budget

[Rick Warder]

President Warder: "I look forward to hammering out the 2009 budget with the aid of Congress and respectfully submit what follows as the 2009 federal budget.

(with highlights added in BOLD)

Budget Totals
Old budget was $3747.36 billion
($2672.527 billion in spending, $1074.833 billion in tax expenditures and cuts).
New budget is $3659.28 billion
($2487.12 billion in spending, $1172.16 billion in tax expenditures and cuts).

The federal deficit has been cut by $88.08 billion.
The new federal deficit is $312.92 billion.



Spending ($2487.12 billion: cut $185.4 billion)

$490.72 billion .... Military Spending
Increased $44.62 bil. from base of $446.105 bil.( 10%)

$145.41 billion .... Iraq War and Afghanistan Operations
Increased $33.56 bil. from base of $111.851 bil.( 30%)

$115.48 billion .... Veterans & Retired Military Pensions and Services (No Change)

$15.8 billion ...... International Affairs
Cut $15.78 bil. from base of $31.590 bil.(-50%)

$26.36 billion ..... General Science, Space, and Technology
Increased $2.39 bil. from base of $23.967 bil.( 10%)

$2.12 billion ...... Non-Defense Energy Spending (No Change)

$28.05 billion ..... Natural Resources and Environment
Cut $3.1 bil. from base of $31.163 bil.(-10%)

$7.81 billion ...... Agriculture
Cut $18.2 bil. from base of $26.020 bil.(-70%)

$42.4 billion ...... Transportation
Cut $28.26 bil. from base of $70.673 bil.(-40%)

$19.1 billion ...... Community and Regional Development (No Change)

$128.14 billion .... Education
Increased $64.07 bil. from base of $64.068 bil.( 100%)

$47.81 billion ..... Training, Labor and Unemployment Programs (No Change)

$379.98 billion .... Non-Medicare Health Spending
Increased $126.66 bil. from base of $253.320 bil.( 50%)

$0 billion ......... Medicare
Cut $345.74 bil. from base of $345.746 bil.(-100%)

$71.94 billion ..... Civilian Retirement (Social Security excluded) (No Change)

$165.42 billion .... Aid to Low-Income Families
Cut $41.34 bil. from base of $206.773 bil.(-20%)

$25.62 billion ..... General Family Support (No Change)

$6.13 billion ...... Commerce and Housing Loan Programs
Cut $0.68 bil. from base of $6.816 bil.(-10%)

$544.82 billion .... Social Security (No Change)

$43.1 billion ...... Administration of Justice (No Change)

$14.2 billion ...... General Government Administration
Cut $3.54 bil. from base of $17.754 bil.(-20%)

$211.08 billion .... Net Interest (No Change)

$-44.37 billion .... Undistributed Offsetting Receipts and Allowance (No Change)


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Tax Expenditures ($1172.16 billion: increased $97.33 billion)

$294.6 billion ..... 2001 and 2003 Tax Cuts (No Change)

$0 billion .........Corporate Tax Breaks
Cut $60.35 bil. from base of $60.360 bil.(-100%)

$173.42 billion .... Personal Business and Investment Benefits
Increased $86.71 bil. from base of $86.710 bil.( 100%)

$185.32 billion .... Pension and Retirement Tax Benefits
Increased $16.85 bil. from base of $168.470 bil.( 10%)

$211.49 billion .... Health Insurance Tax Benefits
Increased $70.5 bil. from base of $140.990 bil.( 50%)

$147.34 billion .... Housing Tax Benefits
Cut $16.36 bil. from base of $163.710 bil.(-10%)

$159.99 billion .... Other Individual Deductions and Expenditures (No Change)

[Rick Warder]

Appendix: Explanations

Sub-categories of broad spending categories
Military Spending: Military personnel, Operation and maintenance, Procurement, Research and development, Military construction, Family housing, Nuclear weapons activities, Other defense-related activities.
Iraq and Afghanistan operations: Costs of military occupations and reconstruction funds.

Military Retirement and Services: Military retirement benefits; Disability and insurance for veterans; veterans education, training, and rehabilitation; Hospital and medical care for veterans & retired military; Veterans housing and other benefits.

International affairs: International development, food aid and AIDS/disease programs, International military aid, conduct of foreign affairs, Foreign information and exchange activities, International financial programs.

Science, Space and Technology: National Science Foundation programs, Department of Energy general science programs, Space flight, research, and supporting activities.

Non-Defense Energy Spending: Energy supply, Energy conservation and preparedness, Energy information, policy & regulation.

Natural Resources and Environment: Water resources, Conservation and land management, Recreational & Park resources, Pollution control and abatement, Other natural resources.

Agriculture: Farm income stabilization & crop insurance, Agricultural research and services.

Commerce and Housing Loan Programs: Mortgage credit, Postal service, Deposit insurance, Other advancement of commerce.

Transportation: Highways & Highway safety, Mass transit, Railroads, Airports and airways (FAA), Aeronautical research and technology, Water transportation, Other transportation

Community and regional development: Community development, Area and regional development, Disaster relief and insurance

Education: Elementary & Secondary education, Higher education, Research and general education programs.

Training, labor and unemployment programs: Employment programs, training and trade adjustment funds, and unemployment insurance.

Non-Medicare Health Spending: Medicaid grants, Childrens health programs, Indian health, Substance abuse and mental health services, Health research and training, Consumer and occupational health and safety, Other health care services.

Medicare: Hospital insurance (HI), Supplementary medical insurance (SMI), Medicare premiums and collections

Civilian Retirement (Social Security excluded): Federal employee retirement benefits, Miner and other retirement funds, General retirement and disability insurance, federal employee health care benefits.

Aid to Low-income Families: Housing assistance, Food stamps, Other nutrition programs (WIC, school lunches), Supplemental security income (SSI), Family support payments, Low income home energy assistance, Earned Income Tax Credit, Child Tax Credit, Other aid to the poor.

General Family Support: Foster care and adoption assistance, Child support and family support programs, Social service programs.

Social Security: Old-age and survivors insurance(OASI), Disability insurance (DI)

Administration of justice: Federal law enforcement activities, Border Security and Immigration, Federal litigative and judicial activities, Correctional activities, Criminal justice assistance.

General government administration: Legislative functions, Executive Office programs, Collection of taxes & fiscal opertations, General property and records management, General purpose fiscal assistance (DC, Puerto Rico, etc.), Other general government.

Net interest: (Can't be changed) Interest on the public debt, Civil Service retirement and disability surplus, Military retirement surplus, Medicare surplus, Other on-budget trust fund interest, Interest received by Social Security trust and off-budget trust funds, Other interest.

Undistributed offsetting receipts and allowance: (Can't be changed) Contributions to retirement programs (on-budget), Employer share, employee retirement (off-budget), Rents and royalties on the Outer Continental Shelf, Spectrum Auction, and allowances to adjust budget totals.

Corporate Tax Breaks: Untaxed Foreign Profits, R&D Tax Breaks, Energy, Mining & Timber deductions, Investments in Non-Profits, Government Bonds and Charitable Contributions, Other Business and Investment breaks.

Personal Business & Investment Benefits: Capital gains (except agriculture, timber, mining, and housing), R&D Investments, Energy and Timber investments, Tax-Free Bonds, Agricultural investments, Step-up basis of capital gains at death, Enterprise & Empowerment Zones and New Markets credit, Other personal investments.

Pension & Retirement Deductions: Tax-free on Employer-paid Pensions, IRAs, 401(k)s, Keogh pension plans, Group life and personal life insurance plans, Exclusion of social security benefits from taxations, Other Retirement Benefits.

Health Insurance Tax Benefits: Employer contributions for medical insurance and care, Self-employed medical insurance premiums, Medical Savings/Health Savings Accounts, Deductibility of medical expenses.

Housing Tax Benefits: Housing Bonds & low-income housing investments, Mortgage interest on owner-occupied homes, Deductibility of State and local property tax, Capital gains exclusion on home sales, Exclusion of net imputed rental income on owner-occupied homes, Exception from passive loss rules for $25,000 of rental loss.

Other Individual Deductions and Exemptions: Charitable Contributions, Additional deduction for the blind and elderly, Deductibility of state and local taxes other than on owner-occupied homes, Soldiers and veterans, Untaxed Social Security benefits for disabled and survivors, Veterans death benefits and disability, Miscellaneous fringe benefits, Workmen's comp etc, Untaxed Foreign Personal Income, Exclusion of reimbursed employee parking & transit expenses, Education credits & Deductions, Adoption and foster care assistance and tax credits, Child Credit, Child Care and Dependent care expenses, Earned Income Tax Credit.