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President Bush's Budget and Kentucky

The President’s 2007 Budget continues the successful pro-growth policies that have encouraged robust economic growth and job creation.  A strong economy, together with spending restraint, is critical to reducing the deficit.  The Budget builds on last year’s successful spending restraint by again holding the growth of overall discretionary spending below inflation, proposing to reduce non-security discretionary spending below the previous year’s level, and calling for the elimination or reduction of programs not getting results or not fulfilling essential priorities. Like last year, the budget proposes savings and reforms to mandatory spending programs, whose unsustainable growth poses the real long-term danger to our fiscal health.

Focusing On National Priorities

The Budget focuses taxpayer resources on National priorities like the War on Terrorism, health care, energy research, and strengthening our global competitiveness through improved math and science education and research.

  • Fighting the War on Terror.  To give our troops the resources they need to fight terror and protect our Nation, the Budget increases defense spending by nearly 7 percent.  This funding will maintain a high level of military readiness, develop and procure new weapon systems to ensure U.S. battlefield superiority, and support our service members and their families.
  • Defending the Homeland.  Government-wide, non-defense homeland security funding, including fee-funded activities, increases by more than 8 percent. The Budget also provides resources to strengthen our borders with funding for 1,500 new border patrol agents, 6,000 new detention beds, 560 detention and removal personnel, and 257 attorneys to expedite removal of illegal immigrants.
  • Reducing Health Care Costs and Improving Access. The Budget makes health care more affordable and available with improvements to Health Savings Accounts, health information technology, and medical liability reform.
  • Reducing our Addiction to Foreign Oil. The Advanced Energy Initiative provides a 22-percent increase in research funding for cleaner, cheaper, more reliable energy: solar, wind, nuclear, zero-emission coal, batteries for hybrid and electric cars, hydrogen, and biomass – with the goal of replacing 75 percent of oil imports from the Middle East by 2025.
  • Strengthening our Competitiveness.  The American Competitiveness Initiative commits $5.9 billion in FY2007, and more than $136 billion over 10 years, to increase investments in research and development, recruit new math and science teachers, encourage American innovation, and strengthen our nation’s ability to compete in the global economy.
  • Promoting Compassion and Strengthening Families.  The Budget continues to advance compassionate programs that are effective in addressing social concerns, including $322 million in targeted Faith-based and Community initiatives.  These efforts fund the Helping America’s Youth initiative, as well as other priority programs.

Budget Items of Special Interest to Kentucky

  • $71.3 million in State Children’s Health Insurance Program (SCHIP) funds to help Kentucky provide health coverage to low-income, uninsured children who do not qualify for Medicaid.  This funding is a 23 percent increase over 2006.
  • $26.4 million for the HOME Investment Partnership Program to help Kentucky fund a wide range of activities that build, buy, or rehabilitate affordable housing for rent or homeownership, or provide direct rental assistance to low-income people.  This funding is a 12 percent increase over 2006.

President Bush’s Budget Also Includes:

  • $772 million for the Occupational Safety and Health Administration (OSHA) and the Mine Safety and Health Administration (MSHA) to strengthen workplace safety and health through strong enforcement and innovative partnerships and cooperative agreements with employers.
  • The Administration again calls on the Congress to pass legislation to increase civil monetary penalties for violations of laws administered by MSHA. The Administration proposes to raise the maximum penalty for egregious violations from $60,000 to $220,000, bringing its penalties more in line with those assessed by OSHA.
  • $110 million, a $20 million increase over 2006, to construct a new dam with two locks at Olmsted, a strategic navigation juncture on the Ohio River.  This construction will replace two existing locks and dams located nearby downstream.
  • $70 million to build a new lock, which will replace two older, smaller navigation locks, at McAlpine Locks and Dam.
  • $65 million for the Appalachian Regional Commission (ARC), which will use these funds to help economically distressed communities make use of resources from other Federal agencies, States, local governments, and the private sector to provide a broad program of assistance.  In 2007, the Commission will promote strategies aimed at diversifying the economy of Appalachia and closing socioeconomic gaps through education, workforce training, and infrastructure programs.  ARC will also work with its State and local partners to implement a new Challenge Grant for Regional Innovation award program, which will reward communities that have shown potential to increase economic opportunity.