SOTU Day 2

The President was on the road yesterday redelivering the SOTU in Tennessee. But back in DC reality hits home. The Republican Congress, with no fear of a veto from Bush, passed a budget package that will save $40 billion dollars over the next five years. The deficit does need to go down but the method chosen is revealing. The Congressional Budget Office estimates that Medicaid changes will raise costs on 13 million poor recipients and end coverage for 65,000 enrollees. Child support payments in the billions will be eliminated, but Medicare insurers will save $22 billion over the next 10 years. It will also allow interest rates on some student loans to rise and fall with the market. I guess only those who can afford tuition will be able to take advantage of the new scientific programs heralded yesterday. And don’t worry, this saving will be eliminated or exceeded as soon as the Republicans make the tax cut permanent.