Due to the GOP push for a 1 percent across-the-board cut on FY 2006 discretionary spending, funding for LIHEAP - the Low-Income Home Energy Assistance Program - is down to $2.16 billion, a significant decrease from last year's $2.18 billion funding level. This figure falls far short of the $5.1 billion authorized by the comprehensive energy law enacted last year, and also far short of the need that exists, particularly in northeastern states.

As this excellent column from Bloomberg.com highlights, there is a gap between the administration's rhetoric and reality when it comes to tackling the long-term budget implications of the rising costs of entitlement spending. Bush spent a lot of time last year making a big deal about the unfunded Social Security liability, and the liability for Medicare is expected to be even greater, with the administration estimating an $11 trillion shortfall.

The federal government posted a budget surplus for December, 2005 for the first time since 2002, according to the Treasury Department. A surge in corporate tax revenues pushed total federal revenues for the month to $241.88 billion, while government spending rose at half the rate of revenues to $230.9 billion.