The White House has released its last budget forecast, and even though it gets to write its own report card, the grades are not good. The bottom line: President Bush entered office with the biggest surpluses in history and leaves with the biggest deficits.

According to the Office of Management and Budget, the deficit next year (Fiscal Year 2009) will be the largest in history, $482 billion, in nominal terms; and the deficit for this year, Fiscal ‘08, at $389 billion, will itself come close to a record.

The five largest deficits in our nation’s history have occurred on this Administration’s watch. The largest so far, $413 billion in 2004, is notable because it shows the abrupt about-face in fiscal policy under this Administration, from a surplus of $284 billion when it arrived to a post-policy deficit of $413 billion.

The Administration’s legacy will have lasting consequences, which we are already experiencing. Since the Bush Administration took office, the national debt has all but doubled to $9.5 trillion. Much of this burden will be borne by our children and grandchildren, who will have to carry the interest and pay back the principal.

Democrats cannot steer the budget to balance overnight. But we have reinstated the pay-as-you-go rule that Republicans let lapse in 2002; and for the first time since 2000, we have reached an agreement on the budget for two years in a row. While we cannot get to balance overnight, we can and will move the budget in that direction.

This entry was posted on Tuesday, July 29th, 2008 at 11:35 am and is filed under Uncategorized .