The White House has been spinning reporters all day with the claim that the new budget holds non-defense spending down, and in some cases even cuts some domestic spending from 2006 budget levels.
To test the claim, I’ve compiled below the proposed fiscal 2008 inflation-adjusted growth rates for spending in the non-defense Cabinet-level agencies compared to the 2006 budget:
Real Proposed Change in 2008 Non-Defense Cabinet-Level Agency Budget vs. 2006 Budget Level | |
Agriculture | -9.2% |
Commerce | 5.9% |
Education | -40.2% |
Energy | 6.1% |
Health and Human Services | 8.5% |
Housing and Urban Development | -0.2% |
Interior | 10.8% |
Justice | -1.7% |
Labor | 15.6% |
Transportation | 6.3% |
Treasury | 7.7% |
Veterans Affairs | 13.8% |
EPA | -10.9% |
Total |
4.1% |
All told, there are five agencies that receive a cut in real dollars: Agriculture, Education, HUD, Justice, and the Environmental Protection Agency. Yet even by the White House’s own numbers, all of these programs combined will still grow beyond the 2006 levels by 4 percentage points above inflation.
Still, we need to wonder: What does this standard really tell us?
Not much. The 2006 budget levels were already bloated after a six-year Republican spending spree. What’s actually interesting to see is how much these agencies would grow — after adjusting for inflation and assuming Congress rubber-stamps the president’s new budget — when compared to budget levels on the day Bush assumed office:
Real Proposed Change in 2008 Non-Defense Cabinet-Level Agency Budget vs. 2001 Budget Level | |
Agriculture | 8.0% |
Commerce | 16.8% |
Education | 36.2% |
Energy | 10.7% |
Health and Human Services | 35.6% |
Housing and Urban Development | 8.3% |
Interior | 12.0% |
Justice | 7.7% |
Labor | 8.8% |
Transportation | 12.4% |
Treasury | 11.7% |
Veterans Affairs | 52.7% |
EPA | -12.8% |
Total |
22.4% |
To put it another way: Bush’s new budget still does next to nothing to strip away most of the massive budget increases in domestic programs he signed into law since 2001. It’s the fiscal equivalent of a recovering alcoholic patting himself on the back for merely drinking six beers a day instead of eight.