Washington Week: Student Voices (O)

$3.1 trillion budget proposal may aid students
Melissa Lomenzo, Staff Writer
The Poly Post (Cal Poly-Pomona)
02/12/2008

(U-WIRE) The Poly Post — The largest federal budget proposal ever, at $3.1 trillion, will help some students pay for tuition by slightly increasing the maximum Pell Grant to $4,800 if it is passed.

Although that may sound like good news for universities, many at Cal Poly find other components of the budget to be irresponsible.

If Congress agrees, the federal budget for fiscal year 2009 will also cut some health benefits for the elderly, augment military spending and increase the federal deficit to near-record levels. The proposed Department of Defense's base budget is $515.4 billion and $70 billion in emergency allowance.

The automatic spending plan for Medicare would be cut from a 7.2 percent to a 5.4 percent growth rate, saving $178 billion. Medicaid would lose $17 billion and $6 billion would be cut from student aid programs across a five-year period to save $208 billion if the proposal passes. Some people do not agree that the military budget should be that high when the health care budget would be cut.

"I don't think it's a good idea," said Amy Denney, a third-year business student. "I think more should be toward medical [costs because that's] definitely a problem."

Although the budget will be balanced by 2012 if President Bush's plan is followed, many see the proposal as fiscally irresponsible.

"The Bush administration is not conservative with economic policies; it's been reckless," said Lynda Rush, an economics professor."Now we're paying the cost."

The federal deficit, at $410 billion this year, is almost the highest it has ever been and may be harmful for the economy.

"In the long run it will raise interest rates," said Rush. Higher interest rates will affect students. "To get a loan ... it'll be tougher," said Abraham Eapen, a third-year biotechnology student. Students are being harmed by high tuition rates.

"The big problem is that a lot of young people are leaving college in debt," said Rush. The proposal allots more money for some education programs, while cutting under-performing programs.

The budget for student financial aid is $95 billion, which will help 10.9 million students.

Annual appropriations for Pell Grants will rise by $2.6 billion, which will allow the maximum amounts given out through Pell Grants to increase $69 in 2009 and rise to $5,400 by 2012, according to the proposal. The budget includes measures to help the economy.

"Many macroeconomists agree we're heading towards a rough time in the economy," said Rush.

The slumping economy has some students wondering why changes are not being made.

"I think rather than continuing this war, [Bush] should think about saving our economy," said Jeanne Kim, a third-year hospitality and restaurant management student.

The budget would make the tax relief permanent and give about $100 billion in temporary relief to strengthen the economy. The tax rebates, which are part of the recently passed $168 billion economic stimulus plan, will increase the deficit and may not help the economy, according to Rush.

"By the time the cut gets to people's pockets it may be too late," said Rush.

The rebates should have been given to low- and middle-income families instead of the top 1 percent because they would spend the money just to make ends meet, according to Rush.

"If you give it to wealthier people, they're more likely to save it," said Rush.

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