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U.S.: Obama's Budget - What States & Cities Need to Know
Source: governing.com
Source Date: Wednesday, April 10, 2013
Focus: Electronic and Mobile Government
Country: United States
Created: Apr 16, 2013

President Barack Obama's $3.7 trillion budget proposal for fiscal year 2014, which he unveiled Wednesday, includes increased funding for jobs, infrastructure and preschool, nearly $800 billion in new taxes, a $1.8 trillion cut to the deficit over the next decade, and cuts to Social Security and Medicare for the first time.

"The numbers work. There's not a lot of smoke and mirrors here," Obama said in his fifth annual budget request.

In good news for states and localities, the budget increases total federal grant funding to them; however, some programs are still on the chopping block.

The president's budget has little chance of becoming law. It's primarily a political document meant to steer Republicans toward a broad debt-reduction deal.

Governing reporters are breaking down his budget to tell you how it would impact states, cities and counties and their specific programs.


Obama has proposed pumping $75 billion over the next 10 years into an initiative to enroll every American child in preschool. He plans to pay for it by raising the cigarette tax.


As part of his pledge to double the amount of renewable energy produced in the United States, Obama also set aside $200 million in one-time funding for states to cut waste and be more efficient. The program is modeled on the administration's education reform initiative, Race To The Top.


Obama's transportation budget calls for ambitious investments in the country's infrastructure but does little to offer new suggestions on how to pay for it.


In what's like a recognition that not every state will choose to expand Medicaid, Obama has proposed postponing Obamacare's planned cuts to Medicaid payments to hospitals. The move would likely complicate the politics of the Medicaid expansion. Read more. Delaying the cuts could also set the administration up for an annual headache similar to what's become known around Washington as the "doc fix."

Public Safety

The president, a more outspoken advocate of gun safety since last year's mass shootings, included increased funding for five programs to try to prevent another Newtown.

Taxes and Revenue

The president's fiscal plan targets wealthy taxpayers and Social Security to help lower the deficit -- but some are concerned that the tax increases and spending cuts could mean added costs for states and localities.

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