FY 2010 Budget: The New Era of Responsibility

Q: What amount of deficit did President Obama inherit from the previous administration(s)?

1. $1 Trillion
2. $0
3. Trillion – it’s the new Billion.
4. None of the above
5. $8.364 Trillion

A: The media reports the President as saying he has a “trillion dollar inherited deficit”.
(see below for the REAL answer)

President Obama says proudly “Those of us who manage the public's dollars will be held to account—to spend wisely, reform bad habits, and do our business in the light of day—because only then can we restore the vital trust between a people and their government.”

The FY2010 Budget that President Obama has presented projects that spending for FY2009 (ending 9/30/2009) by the Federal Government will be $3,938B. This is an increase of $955B dollars over FY2008 spending. This appears to be what President Obama continually refers to as the “inherited trillion dollar deficit”.

Pardon me, but I have a bit of a problem with this definition of “inherited deficit.”

First, the FY2009 Budget for FY2009 was $3,107B, which is $821B below what the current administration plans to spend for FY2009.

Might the $800B Stimulus Package have something to do with this difference?

Second, was it not President-elect Obama who stood before the American People on Jan 7, 2009 in a nationally televised speech from George Mason University and said, “…if we don't take dramatic action as soon as possible… If nothing is done, this recession could linger for years. … There is no doubt that the cost of this plan will be considerable. It will certainly add to the budget deficit in the short term. But equally certain are the consequences of doing too little or nothing at all, for that will lead to an even greater deficit of jobs, incomes and confidence in our economy.”

Maybe it’s just me, but doesn’t this sound more like a man getting ready to create a trillion dollar deficit than a man inheriting one? And it sure sounds like "Fear, Uncertainty and Doubt" way more than it sounds like the "Audacity of Hope".

And lastly, didn’t President Obama’s leadership team (Biden, Pelosi, Reid, et.al.) present an initial Stimulus package of $1.2 trillion?

Oh, by the way, what did that junket to Denver to sign the Stimulus package cost the American taxpayer?

Where is the promised Internet hyperlink that I can use to see the invoice for this trip so that my trust in the government can be restored?

So much for “reform of bad habits” and doing “business in the light of day”.

The REAL answers?

• The FY2009 Budget projected a deficit of $407B on income of $2,700B and expenditures of $3,107B.
• The FY2010 Budget projects a FY2009 deficit of $1,752B on income of $2,186B and expenditures of $3,938B.
• The FY2010 Budget projects that a total of $8,364B will be held in public debt at the end of FY2009, up from the $5,803B held at the end of FY2008.

Seems like an increase in spending of $837B , a shortfall in revenue of $600B, and an increase of $2,561B held in public debt to me.

Don't really see the inheritance thing, but hopefully the administration gets a break on their Inheritance taxes.