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02/13/2012 07:54 PM

Obama unveils budget plan

By: Erin Billups

President Barack Obama unveiled his budget plan Monday details for his blueprint to rebuild the economy during an election year. Our Washington Bureau reporter Erin Billups has more.

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WASHINGTON, D.C. -- President Obama delivered his $3.8 trillion budget plan to Congress Monday morning. He then outlined some highlights at Northern Virginia Community College. A backdrop symbolic of his intentions to invest more in education in a key swing-state in the presidential election.

"An economy built to last demands that we keep doing everything we can to help students learn the skills that businesses are looking for,” said President Obama.

The president also proposes increases in energy, transportation and science spending, all keys he said, to rebuilding the economy. Most other areas of government though are feeling the pinch of the Budget Control Act which slowed the rate of spending growth, the result of this summer's bitter debt ceiling debate.

"We’ll be able to reduce our deficit by $4 trillion by the year 2022, $4 trillion,” said Obama.

But economists like William McBride, are concerned over what wasn't addressed in the president's plan.

William McBride, Tax Foundation Economist said, “It's not a partisan issue, simple facts. Healthcare expenditures are on an unsustainable growth path. This budget ignores that."

Republicans, too, are panning Obama's plan, saying in terms of absolute cuts, not just cuts to spending growth- the budget falls short.

Sen. John Cornyn of Texas said, “The president's plan fails to right this ship and will continue to lead us down this path of more debt, higher taxes and runaway spending."

The president's budget also assumes the expiration of the Bush tax cuts for the wealthy to fill some of the budget gap, it's already a proposal republicans are fighting hard against this election year.

Cornyn said, “The president has chosen once again, to campaign rather than to provide solutions."

It's been nearly three years since Congress has passed a completed budget and with the current partisan environment it's unlikely this will be the year.

McBride said, “Unless something dramatic happens, and we all learn to get along it doesn't appear to be any common ground there."