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President Bush’s Budget and South Dakota

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 forcleaner, 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 South Dakota

• $9.7 million in State Children’s Health Insurance Program (SCHIP) funds to help South Dakota provide health coverage to low-income, uninsured children who do not qualify for Medicaid. This funding is a 23 percent increase over 2006.
• $4.6 million for the HOME Investment Partnership Program to help South Dakota 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.
• $32 million to move the Mni Wiconi Rural Water Project towards completion. When finished it will provide a clean, reliable water supply to rural areas of South Dakota, including some of the poorest Native American communities in the country.
• $21 million, a $4 million increase over 2006, for ongoing construction of the Lewis and Clark Regional Water System, which will bring high quality water to rural areas of South Dakota, as well as to the City of Sioux Falls.

President Bush’s Budget Also Includes:

• $150 million for the Biofuels Initiative, which will help lower our dependence on oil in the long-term by accelerating the development of affordable, domestically produced bio-based transportation fuels and other products largely derived from oil today.
• $15 million for Water 2025, $10 million of which will be for competitive grants, and $5 million for studies to optimize operations and for research on water purification technology. This funding level represents a $10 million increase over 2006.