The Bush Budget

Source: SSTI Weekly Digest for February 6, 2008.

I quote:

The last budget request of a lame duck administration rarely musters much attention from Congress as its focus is turned toward the next administration and, for entire the House of Representatives, its own re-election. Not one of the previous seven budgets of the Bush years has been passed on time, so no one in Washington expects this one to be the exception.

Nevertheless, the fiscal year 2009 request provides the Bush Administration one final opportunity to outline how it would like to see the federal government spend its money. As in every previous budget request from the Bush White House, that doesn’t include much for economic development programs. “Highlights” for economic development programs include:

* Every economic development program in the Department of Agriculture is either slated for elimination or deep cuts.
* The Manufacturing Extension Partnership (MEP) would receive only $4 million, down from $89.6 million in FY08.
* Grants from the Economic Development Administration (EDA) would be slashed 60 percent, dropping from $250 million to $100 million.
* SBA grant programs for entrepreneurial assistance efforts, such as the Small Business Development Centers, SCORE and Women’s Business Centers, would see a $10 million cut for a combined total in FY09 of $87 million.
* The Minority Business Development Agency, while requesting a continuation level of $29 million, would be prohibited from spending $12 million in grant funding until the last day of the FY08 fiscal year – leaving the funding extremely vulnerable to rescissions during the year.
* Community Development Block Grants would see at least a $660 million cut according to the Housing and Urban Development request.
* The Community Development Financial Institutions (CDFI) Fund would be cut to $29 million, nearly 70 percent less than the $94 million appropriated in FY08.

Whether or not this tired assault on the federal government’s role in encouraging innovation and entrepreneurship gains much traction during Congress’s budget sessions this summer remains to be seen.