President Obama Unveils New Budget Plan for 2010

President Obama unveiled his proposed budget yesterday for the 2010 fiscal year, highlighting several areas that will be priorities for his administration.

In a conference call with reporters — including The Hoya — on Thursday, Rob Nabors, Obama’s deputy director of the Office of Management and Budget, said Obama’s budget plan would focus on three “pillars” of governmental action. “We’ve laid out what we think are the priorities of the country,” he said.

First, Nabors explained, the administration will work to reform the country’s current health care system, alluding to the administration’s plans to build up a $630 billion reserve for health care.

“It’s the start of a conversation we want to have with Congress this year,” Nabors said.

Part of this plan will involve looking at new ways to import prescription drugs from other countries, which could help control rising drug costs.

Nabors said he was optimistic about the president’s plan, saying that the administration and the legislature could pass “meaningful” health care reform by the time Congress adjourns in October. “Our goal is to have health care reform implemented by the end of this year,” he said.

The administration is also committed to installing a cap-and-trade system in which companies would pay for an emissions permit up to a set cap, and excess emissions allowances could be sold to other companies. The Obama administration hopes this policy will decrease greenhouse gas emissions, Nabors said. He argued that the proposal, which has been criticized by Republican leaders, offers a chance to preserve the environment and provide additional revenue to the federal government.

Lastly, Nabors emphasized the administration’s commitment to reform the way the federal government spends taxpayers’ money. Most notably, Obama said in his statement to Congress on Tuesday that he would focus on reducing the role of earmarks in the budget process. “I’m proud that we passed the recovery plan free of earmarks, and I want to pass a budget next year that ensures that each dollar we spend reflects only our most important national priorities,” Obama said.

The administration will also avoid growing the budget deficit by adhering to the pay-as-you-go rule, Nabors said. By ensuring that any additional tax cuts are offset by cuts in other areas of the budget, Nabors argued that the administration can get the long-term fiscal trajectory on a more sustainable path.

Nabors added that the president’s proposal to Congress would not try to dictate the terms of the budget process but rather to leave room for discussion and change.

“This is the beginning of a conversation, not the end of a conversation,” Nabors said.