Budget Wonderland

Publication:The Oklahoman; Date:Feb 6, 2008; Section:Opinion; Page Number:10
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Federal spending avoids budget realities

SOMETIMES, Washington becomes Wonderland, with Alice and the Mad Hatter. Up is down, down is up. Someone’s always losing their head.

Money is spent like it grows on trees. Those elected to steward billions of taxpayer dollars go through it like there’s no tomorrow. There’s no shortage of illustrations. Oklahoma Sen. Tom Coburn’s list of wasteful spending earmarks will spin heads and turn stomachs.

Another example is this week’s convergence of President Bush’s fiscal 2009 budget and the economic stimulus package under consideration in Congress. The $3.1 trillion budget would add $407 billion to the federal debt, chiefly because of falling tax revenues in a slowing economy, increases in military spending — and about $160 billion to pay for the stimulus package.

That’s right, the cost of the stimulus stew now simmering on Capitol Hill — a hash of tax rebates, small-business incentives and other ingredients — would be added to the national debt.

We don’t lay all the blame on the green eyeshades at the White House. There’s no indication Congress has an alternative plan to pay for the stimulus package. Robbing Peter to pay Paul is part of Washington’s spending culture.

The stimulus isn’t the only problem. Bush proposes a 4.9 percent increase in domestic discretionary spending, mostly for defense, homeland security and veterans. Other programs are basically frozen, at less than 1 percent growth. The gorilla in the room is entitlement spending — Social Security, Medicare and Medicaid — whose long-term growth will dwarf projected deficits of $390 billion in 2012 and $788 billion in 2018. Bush’s budget almost certainly is dead on arrival with the Democrat-controlled Congress. Democrats aren’t more frugal, they just have different spending priorities. The insult to injury will come when Democrats argue the growing deficit, including the tab for the Bush-backed stimulus deal, argues for letting Bush’s 2001 and 2003 tax cuts expire. Ah, Wonderland.