Obama's Budget: What States & Cities Need to Know

President Barack Obama released his proposed budget for fiscal year 2014 Wednesday. We break it down to tell you how it impacts states, cities and counties and their specific programs.
by | April 10, 2013
President Barack Obama as he speaks about his proposed fiscal 2014 budget in the Rose Garden of the White House. (Photo: AP/Charles Dharapak)

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. View a list of which state and local grant programs the president has targeted for cuts.

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.

Keep checking this page for ongoing analysis.

Education

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. Read more.

Energy

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. Read more.

Infrastructure

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. Read more.

Medicaid

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." Find out why.

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. Read more.

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. Read more.

News Staff  |  News Staff

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