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President Bush Releases FY 2004 Budget Request

Cite as "Posted on AILA InfoNet at Doc. No. 03020440 (Feb. 4, 2003) ."

President Bush released his FY 2004 budget request on 2/3/03, the highlights of which included $18.1 billion for the new Dep’t of Homeland Security’s Border & Transportation Security Directorate, with additional resources for backlog reduction and entry/exit system technology.

Department of Homeland Security Fact Sheet

Protecting the Homeland: Fiscal Year 2004 Budget

The President has requested a budget which reflects his clear commitment to supporting the priorities and the mission of the Department of Homeland Security. The Fiscal Year 2004 budget supports the Department's effort to implement the objectives outlined in the President's National Strategy for Homeland Security including:

Preventing terrorist attacks within the United States;
Reducing America's vulnerability to terrorism; and
Minimizing the damage and recovering from attacks that do occur.

The Department will move forward with a sustained and cohesive strategy in key areas such as improving security at the nation's borders, implementing grant programs to ensure that first responders are properly trained and equipped, decreasing the vulnerabilities of the nation's critical infrastructure, protecting against bio-terrorism, advancing research in science and technology aimed at countering terrorist attacks, improving intelligence analysis and coordination and recapitalizing the Coast Guard.

The budget seeks to maintain funding for critical operations of each of the Department agencies and organizations since their individual missions will enable the Department to achieve its overall vision for securing the homeland.

The Fiscal Year 2004 budget request for the Department of Homeland Security is $36.2 billion. This represents a 7.4 percent increase in funding over FY2003, and a 64 percent increase ($14.1 billion) over FY2002, with over 60 thousand staff added to protect our country. The consolidation of these entities into the new Department is the largest federal reorganization in more than 50 years.

FY2004 BUDGET HIGHLIGHTS:

Improving Information Analysis and Infrastructure Protection

This budget will support the Department's ability to analyze and identify potential threats, assess vulnerabilities, map those threats to vulnerabilities and provide the information from which to organize protective measures. $829 million is requested for this initiative - an increase of $652 million (370 percent) over the FY2003 level.

This funding includes approximately $500 million to assess the nation's critical infrastructure (e.g., nuclear power plants, water facilities, telecommunications networks, and transportation systems) and to work to ensure that our highest priority vulnerabilities are addressed.

Advancing and Harnessing Science and Technology

$803 million is requested for the Department to use American ingenuity and develop new partnerships with the private sector to research, develop and deploy homeland security technologies that will make America safer - an eight-fold increase over 2002.

The Science and Technology Directorate's Advanced Research Project Agency will direct $350 million in new funding to address gaps in high-priority operational areas like protecting critical infrastructure and our borders.

Preparing for and Responding to National Emergencies

One of the Department's top priorities is to ensure that our nation is prepared to respond to incidents throughout our country. The budget requests $5.9 billion for Emergency Preparedness and Response, an increase of 16 percent ($838 million) over FY2003.

The Emergency Prepared and Response Directorate will coordinate all necessary response efforts quickly and effectively, including maintaining and strengthening the Strategic National Stockpile of drugs, vaccines, and equipment with $400 million requested to continue this initiative. An additional $890 million is requested to pre-purchase critically needed vaccines and medication for bio-defense.

Securing the Nation’s Borders and Transportation System

$18.1 billion is requested for the Border and Transportation Security Directorate to meet the strategic goals of improving border security and transportation security, while at the same time facilitating the unimpeded and reliable flow of commerce and people across our borders and through our airports, seaports, highways and railways. The budget also supports the Department's effort to restructure the border security agencies to enhance efficiencies and create greater accountability in one seamless border service.

$4.8 billion is requested for the Transportation Security Administration, an increase of $160 million from FY2003 after subtracting one-time costs from its start-up. TSA will build on its success of hiring and deploying a new professional screening workforce to strengthen its operations for enhancing security for our nation’s transportation system.

The budget request also includes funding for the comprehensive Entry-Exit system, which will enable the Department to track the entry and exit of visitors to the United States. $100 million in new resources is requested in FY2004 for a total of $480 million.

The Department recognizes that state and local governments face new and unprecedented threats. This budget will them help obtain the tools, resources, and information they need to do their jobs. $3.5 billion is requested to support the nation's first responders, including $500 million in grants for assistance to firefighters, $500 million for state and local law enforcement terrorism prevention initiatives, and $181 million for the Citizen Corps.

Other initiatives for Border and Transportation Security include:

$62 million of new funding for the Container Security initiative;
$307 million additional investment in the Automated Commercial Environment;
$119 million additional investment for non-intrusive inspection technology;
$40 million of new funding for Atlas/Chimera to address requirements in the Border Security Act; and
$18 million for the Customs Trade Partnership Against Terrorism initiative.

Securing the Nation's Ports and Ensuring Safety in our Waterways

The Coast Guard will work with the Border and Transportation Security Directorate to ensure that the safety and security of our nation's waterways and ports. $6.7 billion is provided to recapitalize the Coast Guard, an additional $615 million, which is ten percent above the FY2003 level - supporting the deployment of Maritime Safety and Security Teams, the procurement of coastal patrol boats, and continued development of the maritime "911" system. $134 million is requested for the maritime "911" system.

The budget includes $500 million to continue the "Deepwater" program, which is upgrading the Coast Guard's fleet of cutters, aircraft, and related systems to improve performance across DHS as the Coast Guard's activities become more integrated with other DHS components.

Improving Immigration Services

The Department is committed to greatly improving immigration benefits to the more than seven million annual applicants. The FY2004 budget continues the President's $500 million initiative to reduce the backlog of applications, while at the same time ensuring that our nation's policies for issuing visas to visitors are consistent with security and foreign policy interests.

Protecting our Nation's Leaders and Suppressing Counterfeiting

The Secret Service will continue to protect our leaders, implement security at designated National Special Security Events and suppress counterfeiting through the $1.3 billion requested in the budget, an increase of nearly 10 percent over FY2003.

Strengthening all other Essential Missions

The FY2004 budget provides $12.2 billion for other essential missions not specifically related to homeland security, an increase of 5 percent. This includes:

an increase of $83 million (6 percent) for Border and Transportation Security;
an increase of $18 million (1 percent) for Emergency Preparedness and Response; and
an increase of $319 million (9 percent) for the Coast Guard.

White House FY 2004 Budget Fact Sheet

For Immediate Release
Office of the Press secretary
February 3, 2003

Fact Sheet: President Bush's 2004 Budget

Today's Action

The President's FY 2004 budget, released today, will strengthen our economy, prosecute the war against terror, defend our nation and allow Americans to keep more of their own money. The budget also makes major new investments in top priorities - including education, Medicare, health care, homeland security, energy independence, the environment, compassion and the unemployed.

President Bush believes that the best way to hold down deficits is to promote pro-growth policies and control government spending. His budget holds the overall increase in government spending to 4% -- the same amount as the paychecks of America's families.

Key Points on The President's FY 2004 Budget

Strengthening the Economy:The President's budget includes his jobs and economic growth plan to speed the pace of America's economic recovery and get more Americans back to work.

The plan provides broad, fair and permanent tax relief to 92 million Americans who will keep an average of almost $1,100 more of their own money.
The President's plan accelerates income tax rate reductions, the elimination of the marriage penalty, and the increase in the child tax credit from $600 to $1000. A family of 4 with income of $40,000 would see their federal income taxes fall from $1,178 to $45.
To boost investor confidence, and help nearly 10 million seniors who receive dividend income, the President's plan will end the unfair double taxation of dividends.
The President's plan also provides new incentives for small businesses to grow and invest. Under his plan, small businesses that purchase equipment to expand will get assistance through an increase in the expensing limits from $25,000 to $75,000.
The budget provides $3.6 billion over the next two years for the President's plan for new Re-employment Accounts, which will provide eligible unemployed workers the assistance they need to find a new job.

Winning the War on Terrorism: To address the needs of America's military and protect our nation, the budget provides $380 billion for our nation's military, a $15 billion or 4.2% increase.

Securing the Homeland: The President's budget provides $41 billion for total homeland security spending. Excluding Department of Defense spending, the budget includes $35 billion for homeland security, a $2.5 billion or 7.6% increase that more than doubles funding over the past two years. The budget includes:

$890 million as a first installment of new funds for Project BioShield to secure new vaccines against smallpox, anthrax, and botulinum toxin.
$829 million for the DHS' Information Analysis and Infrastructure Protection Directorate providing brand new capabilities to access analyze and integrate threat information.
$500 million to assess the nation's critical infrastructure (e.g. nuclear power plants, water facilities, telecommunications networks) and ensure our highest priority vulnerabilities are addressed.

Modernizing Medicare with Prescription Drug Coverage: The President's budget proposes to invest $400 billion over 10 years to strengthen and improve Medicare with prescription drug coverage.

Excellence in Education: Last year, the President signed into law historic education reforms through the No Child Left Behind Act. The budget provides unprecedented levels of education funding to help strengthen America's schools. It includes $53.1 billion for education programs, an increase of $2.8 billion from FY 2003 and an increase of $3.2 billion over FY 2002. This funding represents an increase of 47% over FY 2000 and a 131% increase in education spending over the last 8 years. The budget includes $1.9 billion more for Pell Grants. The Budget strongly supports the No Child Left Behind Act with:

$1 billion more for Title I assistance in high-poverty areas schools
$1 billion more for special education
Significant increases for reading and early childhood learning programs

Strengthening Health Care: The budget provides $89 billion in health care tax credits to expand access to health care. It also proposes the creation of new tax-free savings accounts which could be used for health care needs and long-term care.

Improving the Environment: The President's budget builds on his strong commitment to protecting our environment through new technology, conservation, and responsible stewardship. It includes:

$1.7 billion over the next five years for the Freedom Fuel and FreedomCAR programs for hydrogen fuel cell research and development to enable the next generation of automobiles to be pollution free.
Full funding for the Land and Water Conservation Fund ($900 million).
$2.7 billion for conservation programs under the new farm bill.
A $150 million increase to accelerate Superfund cleanups.

Promoting Compassion: The President's budget includes proposals to help extend the America's compassion to helping our neediest neighbors at home and abroad. It includes:

Funding for the Emergency Plan for AIDS Relief, a five-year, $15 billion initiative to turn the tide in the global effort to combat the HIV/AIDS pandemic. This virtually triples U.S. funding to fight the international AIDS pandemic.
$450 million over three years to bring mentors to more than 1 million disadvantaged students and to the children of prisoners.
$200 million as part of a three-year, $600 million federal treatment initiative to help addicted Americans find needed treatment from the most effective programs, including faith-based and community-based organizations. This will make treatment available to help 300,000 more Americans combat their addiction over the next three years.

Budget Discipline: The best way to counter deficits is through stronger economic growth and spending discipline in Washington. This budget would hold spending growth to 4%, no faster than the growth of the average American families' paycheck.

The President is committed to balancing the budget as fast as possible and consistent with national priorities.
Deficits are manageable in historical terms at 2.7% of GDP. This is appropriate in light of the war on terrorism, the continuing effects of the stock market on revenues, and economic needs.
The budget would be in double digit deficit if had there never been a tax cut in 2001. The budget returned to deficit because of war, recession and emergencies associated with the terrorist attacks of September 11th.
Long-term interest rates have dropped to 40-year lows even as the budget returned to deficit, and interest on the debt is very low.
Currently, the federal government pays only 8 cents on the dollar, as compared to a recent high of 15 cents in 1996.

Budget Basics for FY 2004

Total government spending in FY 2004 will be $2.2 trillion, a 4.2% increase over 2003 levels.
Discretionary government spending will increase by 4%, comparable to the growth in family budgets, and enough to allow the federal government to meet its important priorities.
The fastest growing major category of discretionary spending is homeland security at 5.5%.Defense grows at 4.2%. The total of all other discretionary spending grows at 3.8%, funding important priorities such as education, health, energy and the environment.
The President's budget increases non-defense homeland security funding by 7.6%.
Economic assumptions are in line with CBO and private sector projections. Because of uncertainty in revenue levels, the Administration made an additional downward adjustment in revenues of $25 billion in 2003 and $15 billion in 2004.
Total tax and other revenue collections will be $1.9 trillion in 2004, a 4.7% increase.
A combination of the need to fund new priorities and a cautious forecast produces a deficit that peaks in 2004 at $307 billion, and declines thereafter to $190 billion by 2008.
The FY 2004 deficit is expected to be about 2.7% of GDP, manageable and modest by historical standards. It declines to 1.4% of GDP by 2008.
Publicly-held debt is 36.9% of GDP in 2004, well below average post-World War II levels, and declines to 36.4% by 2008.
While the deficit rises in 2003, the interest cost on the federal debt declines to 8% of total spending, the lowest level as a percentage of total outlays in over 20 years. Interest expense remains below 10% over the next 5 years.

(02/04/2003)

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