In our previous release ("First Look at the President's FY2010 Budget Blueprint"), we discussed the broad fiscal impact of the FY2010 Budget Blueprint. We commended the President for having a specific fiscal goal, honestly budgeting for expected costs, and for providing offsets for many of the new policies he supports. However, we expressed strong concern that the budget included items in the baseline (such as AMT patches, Medicare patches, and the renewal of the 2001 and 2003 tax cuts), as a way to avoid paying for them—a policy that would make the already dire fiscal picture even worse.
This release takes a more in-depth look at some of the most important items and trends in the budget.