http://tinyurl.com/27dmo<snip>
Proposed overall discretionary spending - outside mandatory programmes such as Social Security and Medicare - will rise by 4 per cent. With defence rising by 7 per cent and homeland security by 10 per cent, this leaves less than a 1 per cent increase for the rest of the discretionary budget - including education, health, job training and employment, housing programmes and environmental protection.
Bill Beach, a fellow at the conservative Heritage Foundation think-tank in Washington, says such cuts will have an important symbolic component. "The president has a political point to make which may be more important than the fiscal impact," he says.
Many conservative Republicans have been appalled by the rapid rises in federal spending in recent years.
"By controlling spending on things like the EPA and the Labor department, he can bring back angry Republicans into the fold," Mr Beach says.Cash-strapped cities and states are bracing themselves for the withdrawal of federal spending that supplements their own expenditure on sectors such as health and education.
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much more...