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Budget debate begins, local take on 2012 federal budget proposal

POSTED: Tuesday, February 15, 2011 - 5:02pm
UPDATED: Friday, April 13, 2012 - 9:54am

WACO -- In his 2012 Federal Budget Proposal, President Obama makes it clear he wants to cut wasteful spending and invest in the future.

However, Congressman Bill Flores wants to see more cuts to create more jobs and a better business environment.

Fox 44 spoke to Baylor Economist, John Pisciotta, to see what he took from the proposal.

"The deficit would just be reduced, get down about $100 billion less than it is. Where we're now at $1.5 trillion dollars a year, we're going to go to $1.4 trillion."

But republicans say that's not going to cut it. Republicans and Democrats show big differences in their ways to go about fixing the economy.

For instance, the budget provides $77.4 billion for the Department of Education. While Congressman Flores believes education issues should be taken care of at state and local levels.

Flores also says he would have liked to see less tax hikes so private sector businesses can gain confidence in creating more jobs. While McLennan County Democrats say investing will create jobs and increasing taxes for the rich will increase revenue.

"We as a country have to be committed to finding further savings but we cannot sacrifice our future in the process," says McLennan County Democrat, Kelly McDonald.

Some economists say now is not the time to invest in the proposed programs.

"What he needs to take out is numerous proposals for increased government spending at this time. Then he needs to probably double his cuts in government spending," said Pisciotta.

Democrats and Republicans agree: we can't just cut the frills, we have to cut much more.

Now, it's crunch time, and Republicans and Democrats have until March to find a solution.

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