First Review Underway
After reading the President's message, overview, and priorities documents (I, II, III, IV, and V), I’m offering some initial reaction to the proposal. On first reading, it is striking that the budget proposal makes clear that performance has to take a lead in determining the continuation of existing programs. While this will meet with some opposition, as performance over intent is an unlikely argument by many in Congress, it offers a glimpse into the thinking of the President and the realities of such an enormous budget.
The budget reflects the improving health of the economy, and that tax revenues are increasing, due to (or for the left, in spite of) the tax cuts over the last four years. Additionally, it highlights, to the President’s credit, the shortcomings of the government in certain areas. These include real property asset management, competitive sourcing, and improper payments. Additionally noteworthy, is the policy statements behind much of the budget, including specifically the administrations policy directions toward taxes, energy, litigation reform and regulatory reform. It was also a welcome thing to see that the budget, and future projections, weren’t based on pie in the sky predictions of future GDP growth, instead settling towards a 3.1% growth for the years ’09 and ’10. The same was done of the productivity gains, which have averaged 4.2% for the last four years, but ongoing projections are at 2.5%.
Yet to come is the specific departmental proposals, and a chance to see if the domestic policy supports the ideal of compassionate conservatism, a safety net as opposed to a hammock, and continued refocusing of federal dollars to an updated and strengthened national defense and security establishment.
