fred, from Irvine, CA writes:
Hi, Director Nussle: Thanks for your government service. This year, in a time of pretty good economic news, and good unemployment, we have a deficit of $150-200 billion. Does it bother anybody in DC that we are borrowing, placing the cost of our lives today, on the backs of our children, in a time of good prosperity?

Jim Nussle
Hi Fred. The good news is that our growing economy is helping to drive down our deficit. Tax revenues have grown at double digit rates for the last two years and at 6.7 percent this year.

But I take your point. We have a huge budgetary challenge on the horizon – namely, the unsustainable growth in important programs like Medicare, Medicaid, and Social Security.

The President has offered sensible reforms on Social Security and also Medicare and Medicaid. These modest changes now have a big impact over time. In his budget, he offered proposals saving $92 billion over five years. These translate into substantial savings in Medicare – nearly $8 trillion or 25 % of the program’s unfunded obligations.

But, there’s still much more to do. The President will continue to talk about the real and dramatic choices we face if steps aren’t taken to prevent this fiscal train wreck. But for the sake of our children and grandchildren, we need Congress to begin to take action.

Michael, from Powell, Tn writes:
Where do the members of Congress who want to increase spending think the money for their proposals will come from?

Jim Nussle
Michael, That is a really good question.

Congress is currently proposing discretionary spending increases of $205 billion over the next five years on top of the President’s budget request over the next five years. $205 billion averages out to about $112 million per day.

And the way they plan to pay for all that extra spending is to raise taxes.

Families are working hard to pay their mortgages or pay for their children’s college education. Now is not the time to take more money out of their pockets.

Jason, from Mobile, AL writes:
How will the struggling Social Security program continue? The benefit our eligible citizens are recieving is not enough to live on, and now the senate has aggreed to allow "illegal aliens" benefits. How is the system going to survive?

Jim Nussle
These are vital programs that many Americans rely on. But, you’re right. They are struggling and growing faster than the economy, faster than inflation, and faster than our ability to pay for them.

Failure to fix them will one day leave our children with three bad options: huge tax increases, huge benefit cuts or massive amounts of debt.

So, we've got to tackle this problem now for the sake of seniors, young people and our country's economic future.

The President has proposed some reforms to strengthen and preserve Social Security.

Congress has not taken any steps yet to deal with this problem, but I’m encouraged that the Senate Budget Committee has started a dialogue of how we can address this huge challenge.

We must keep working toward solutions for the sake of our children and our grandchildren.

Shahab, from Saratoga,CA writes:
How much of the Budget is appropriated to the president's Domestic Initiatives, such as Education and Healthcare?

Jim Nussle
Thanks for your question. The President is very concerned about the quality and cost of their children’s education and access to affordable health care. He wants to make sure there are sufficient resources, but he also wants to know that the resources are being spent in the most effective way.

The President’s education initiative, No Child Left Behind (NCLB), is already working to ensure all students perform at or above grade level in reading and math by 2014. A September 2007 report card on the program shows in math, the scores for 4th and 8th graders were higher than they've ever been. In reading, the scores for 4th graders were also the highest on record.

The President recently signed a bill that will help families afford college for their children, including an increase in Pell Grants from $4,310 in 2007 to $5,400 by 2012.

In addition, to offering a 20 percent increase in the State Children’s Health Insurance Program, the President also has proposed changes to the tax code that will help support families that don’t get their health care through their jobs.

Small businesses and civic and community groups should be able to band together to leverage their bargaining power for access to affordable health care and we should reduce frivolous lawsuits that increase patients' costs.

The entitlement programs for health care, Medicare and Medicaid, are huge parts of our federal budget and help support older Americans and those who need financial assistance.

Joshua, from Mason City, IA writes:
What is the current federal budget deficit for the United States? Is it higher or lower than in previous years?

Jim Nussle
Thanks Joshua for your question. It's good to hear from an Iowan.

The good news is that this year's deficit fell from $248 Billion for 2006 to $163 Billion for the fiscal year that just ended October 1, 2007. Pro-growth tax policy and spending control does work after all.

Michael, from Amherst, MA writes:
You havent had a balanced budget since the early part of the decade. With all the tax cuts to the rich and to corporations AND a war going on, how do you plan on balancing this budget? (please PLEASE dont say cuts to federally funded education programs)

Jim Nussle
The best way to reduce the deficit is to keep the economy strong and restrain federal spending.

Despite war costs and Katrina, we’ve reduced the deficit substantially three years in a row.

The deficit is now lower than it has been in five years – and, as a percentage of the economy, the deficit is lower than when President Reagan was in office.

We are not proposing cuts in annual domestic spending. They will continue to grow, but will do so in a fiscally responsible way.

Matt, from The University of Miami writes:
Mr. Nussle, I first want to say thank you for serving President Bush and I support and appreciate what all of you are doing for our country. What would you say is the biggest challenge that you face in your position? Thank you very much for your time.

Jim Nussle
Thanks Matt. This job is an amazing one. The sheer scope of what the President’s Office of Management and Budget is involved in is very broad. The Director has a central responsibility for implementing the full range of the President’s agenda. My background as chair of the House Budget Committee and the great, professional career staff here at OMB to provide analysis really helps.

The toughest part is being Dr. No. There are many worthwhile projects, but my job is to focus limited resources on the Nation’s key priorities.

CLIFF, from BRIMFIELD, OHIO writes:
DIRECTOR NUSSLE: I THINK I READ THAT THE WAR IN IRAQ AND THE REST IS COSTING US,ONE BILLION DOLLARS A DAY. IF THIS IS EVEN CLOSE TO THE TRUTH THEN HOW CAN WE EXPECT TO BALANCE ANYTHING IN THE SHORT RUN AND IT WILL BE AN ENDURANCE CONTEST TO DO IT IN THE LONG RUN. ON TOP OF THIS THE FIRST WAVE OF SOCIAL SECURITY INCREASE IN INDIVIDUALS STARTS IN 2008. THE BUDGET IS ONE THING AND THE DEBT IS ANOTHER. DO YOU THINK THAT WE WILL BE ABLE TO ADDRESS EITHER OF THESE IN A REAL MEANINGFUL MANNER WITHOUT PUTTING SOME TYPE OF SPIN ON IT? THANK YOU

Jim Nussle
We’ve made a crucial investment in the safety and security of the nation, which is also, by the way, an important economic objective. We’ve reduced the deficit by keeping the economy strong and restraining spending. And, we’re on a path to balance the budget in five years. But, you’re right. Runaway entitlement spending is a problem that needs to be dealt with.

The President has proposed reforms and Treasury Secretary Paulson and I will continue our dialogue with lawmakers. We encourage you to let your Congressman and Senator know you support reforms.