[Budget of the United States Government]
[II. Budget Highlights]
[From the U.S. Government Publishing Office, www.gpo.gov]


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                         II.  BUDGET HIGHLIGHTS


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                        A New Approach to Budgeting

Moderate Growth in Government and Fund National Priorities:

    Moderates recent rapid growth in spending, while funding 
            national priorities, paying down the debt, and providing tax 
            relief.

    Strengthens and reforms education, granting the Education
            Department the largest percentage spending increase of any
            Department (11.5 percent increase in 2002).

    Saves the entire Social Security surplus ($2.6 trillion) and
            commits to reforming the program.

    Spends every penny of Medicare tax and premium collections
            over next 10 years only on Medicare. Modernizes and reforms
            Medicare.

    Restores commitment to military personnel and begins
            transition to a 21st Century force structure.

    Champions compassionate conservatism by supporting the
            critical role that faith-based and community organizations
            play in helping people at the local level.

Debt Reduction: Achieves historic levels of debt reduction, retiring the maximum amount of debt possible over 10 years ($2 trillion).

Tax Relief: Lets taxpayers keep roughly one-fourth of the surplus they produced ($1.6 trillion over 10 years).

By the Numbers:

    Allocates projected $5.6 trillion surplus over 10 years.
            Breakdown of surplus:
            --Saves all of Social Security surplus ($2.6 trillion) for
              Social Security.
            --Provides $1.6 trillion in tax relief over 10 years.
            --Creates an unprecedented $1.4 trillion reserve for
              additional needs, debt service, and contingencies.

    Produces a $231 billion total surplus in 2002.

    Reduces historically high income tax burden.

    Moderates recent explosive growth in discretionary spending to
            4.0 percent growth in 2002, an increase of $26 billion over
            2001.

    Moderates growth in spending by making reductions in one-time
            spending, unjustified programs, duplicative programs, and
            programs that have completed their mission in 2002.

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                 A New Approach to Budgeting--Continued

Initiative Highlights:

   K-12 Education. Increases funding for
           elementary and secondary education by $1.9
           billion in 2002 over 2001 funding.

   Reading. Fully funds President's Reading
           First initiative, including Early Reading
           First, at $975 million in 2002, more than
           tripling funding for reading.

   Medicare. Sets aside $153 billion over the
           next 10 years for the Immediate Helping
           Hand initiative and Medicare
           modernization.

   National Institutes of Health (NIH).
           Continues commitment to double NIH, by
           providing a $2.8 billion increase for NIH,
           the largest annual funding increase in
           NIH's history.

   WIC. Funds the Special Supplemental
           Nutrition Program for Women, Infants, and
           Children (WIC) at 7.25 million individuals
           a month, maintaining current program
           level.

   Conservation. Provides the highest ever
           request for the Land and Water
           Conservation Fund - fully funding the
           program at $900 million.

   Energy Assistance. Nearly doubles the
           existing Weatherization Assistance Program
           providing an increase of $1.4 billion over
           10 years.

   Community Health Centers. Launches a
           doubling of the number of people served by
           Community Health Centers by adding 1,200
           sites.

   Provides tax relief to all Americans who
           pay income tax.

   Reduces the marriage penalty.

   Ends the death tax.

   R&D tax credit. Permanently extends the
           research and development (R&D) tax credit.

   Tax incentives. Provides other tax
           incentives for education, farmers, the
           disabled, health care, the environment,
           and charitable purposes.

   National Defense. Provides a $14.2 billion
           increase in Department of Defense spending
           in 2002 to begin to arrest the decline in
           national security, including $1.4 billion
           for military compensation to improve
           quality of life and reenlistment and
           retention of military personnel, $2.6
           billion for research and development for
           new technologies (including missile
           defense alternatives), and $400 million to
           improve housing for our military members
           and their families.

   International security. Improves embassy
           security overseas, adding $1.2 billion.


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