(CNSNews.com) - The budget deal cut late Friday by President Barack Obama, Senate Majority Leader Harry Reid (D.-Nev.) and House Speaker John Boehner (R.-Ohio) will allow $3.7555 trillion in federal spending in this fiscal year.
That is $773 billion more than federal spending was in fiscal year 2008--the fiscal year before Congress enacted a bailout for the banking industry requested by President George W. Bush and a $787-billion economic stimulus law request by President Barack Obama.
On Friday night, Boehner and Reid released a joint press statement saying that together with President Obama they had reached an agreement to cut spending in fiscal year 2011 to a level $78.5 billion below the president’s original budget request. “We will cut $78.5 billion below the President’s 2011 budget proposal,” they said.
President Obama’s 2011 budget proposal asked for $3.834 trillion in spending. Subtracting $78.5 billion from that leaves $3.7555 trillion in spending.
In fiscal 2008, according to the Office of Management and Budget, the federal government spent $2.982544 trillion--or $772.95 billion less than the $3.7555 trillion the Boehner-Obama deal will allow the federal government to spend this year.
That $773 billion in spending that the federal government will do this year over and above the federal spending level of 2008 equals 98 percent of the $787 billion stimulus signed by President Obama in February 2000—on the premise that it was a one-time, short-term spending escalation needed to pump up the economy in a time of recession.