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Hagan wants to cut foreign aid in Obama budget

Tuesday, May 12, 2009
(Updated 4:42 pm)

RALEIGH (AP) — U.S. Sen. Kay Hagan said Tuesday she would like to cut the amount of international aid provided in President Barack Obama's budget plan, but she largely praised the proposal as fiscally responsible even though it shatters records with a deficit of more than $1.8 trillion.

Hagan, a former state budget writer, said she opposed Obama's plan to cut $400 million out of a program that helps law enforcement agencies offset the cost of incarcerating illegal immigrants who have committed crimes. The North Carolina Democrat's only proposed cut was to international aid, and she largely praised increased spending on teachers and rural health care.

"President Obama is making a serious effort to rein in the fiscal irresponsibility which has plagued us for too long by cutting the deficit in half by the end of his first term," Hagan said in a statement.

Her support was directed toward this year's budget. Two months ago, Hagan argued that the administration's long-term budget plans support deficits that she deemed "completely unsustainable and unacceptable." The White House estimates that this year's budget will create a record $1.8 trillion deficit as the nation tries to rebuild the economy.

Hagan supports the Senate's long-term budget plan, which cuts $10 billion from Obama's budget each year, Hagan spokeswoman Colleen Flanagan said. Even though that's a minute fraction of the overall budget — this year's is set to be $3.4 trillion — Flanagan said it was enough for Hagan to deem the long-term proposal sustainable while Obama's plan was not.

"She believes it is a better way forward than the original budget," Flanagan said.

Looking ahead, the White House projects that annual deficits will never dip below $500 billion and would total $7.1 trillion over 2010-2019. And those figures rely on economic projections that are more optimistic than private sector economists and the Congressional Budget Office.

Obama's promise to cut the annual deficit in half by the end of his first term recognizes that he is endorsing a hefty deficit this year. His annual deficits will remain large and continue adding to the national debt.

Hagan said that Obama's budget would increase international aid. Her office said that while the programs are important and commendable, the domestic situation makes it difficult to pass such increases. Hagan wants to keep aid programs at the same level.

"While there are obviously areas of disagreement ... I am confident that we can work through whatever differences exist and produce a budget that will meet the needs of the American people," Hagan said.

Republican U.S. Sen. Richard Burr has widely panned the budget plans, saying excessive spending will leave the nation burdened with too much debt.

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