President Obama has released his 2013 budget recommendations.  And while the House and Senate will have their own ideas, the President’s budget is at the very least set a marker for administration priorities.

As a example, the President’s budget includes specific ideas on how to improve cities and metropolitan areas  as well as rural areas.  

Also included in the budget is a six-year $476 billion plan to invest in transportation. This compares to the House proposal of a five year $260 billion plan which is highly controversial.

As for how to pay it for it all, the President’s budget proposes cutting the deficit by $3 trillion over 10 years. That reduction would be achieved through $1.5 trillion in new taxes, $800 billion in “war savings,” $278 billion in mandatory spending cuts and $360 billion in Medicare and other entitlement cuts.

No matter whether its the President’s proposal or the House or Senate, they will be constrained by last year’s deficit reduction law that set a cap of $1.047 trillion for Fiscal Year 2013.This amount, while slightly hire than the current year cap of $1.043 trillion is lower than the 2011 enacted level of $1.055 trillion. Any proposal that spends above the cap must identify offsets in the budget.

The bottom line is that local officials should pay close attention as funding cuts to programs of importance to communities to reduce the deficit could be in harm’s way, much like the final 2012 budget deal.

The League will be working with our national partners to identify key areas.  Keep up to date through this blog and our Legislative LINK weekly e-newsletter.

Arnold Weinfeld is Director of Strategice Initiatives and Federal Affairs for the Michigan Municipal League. He can be reached at 517-908-0304 or by e-mail.