The Courier-Journal from Louisville, Kentucky • Page A5

HE RESIDENT UDGET DEFENSE $419 billion 4.5 percent National impact: Would include no money for the wars in Iraq and Afghanistan, which are being paid for with extra, or supplementary, budgets that are expected to total $100billion this year and a similar amount next year. Would add people and money to the special operations forces to support the global war on terrorism and would accelerate the restructuring of the Army while creating more Marine Corps infantry battalions. Would include cuts for the B2 bomber and a missile-defense system and eliminate a Navy aircraft carrier. The Army said it would spend $875million to buy 240 tactical Stryker vehicles. Military personnel would get a pay raise of 3.1percent and a 4 percent increase in housing allowance.

Local impact: In Kentucky, in construction projects $167million for Fort Campbell, including three housing complexes, an urban warfare assault course, a new training center and two special forces projects; for the Wendell H. Ford Regional Training Center in Muhlenberg County; and about $21million for Fort Knox. The budget would cut $110million from the chemical weapons demilitarization project at the Blue Grass Army Depot in Richmond, said Rep. Ben Chandler, D-6th District. is irresponsible that the administration continues to spend billions of dollars in Iraq, but will not fulfill its obligation to the citizens of Kentucky by funding the weapons disposal program at the Blue Grass Army Chandler said in a statement.

MEDICAID Spending: $198billion 2.2 percent (includes SCHIP, State Health Insurance Program) National impact: The Bush administration proposed little change in Medicaid spending laws, instead challenging states to trim waste, close loopholes and eliminate duplicate benefits. Local impact: Unknown. think going to be a very tight said Dr. James Holsinger, secretary for the Kentucky Cabinet of Health and Family Services. think an increase is in the AGRICULTURE Spending: $19.4 billion 9.6 percent National impact: Would cut $587million from farm price supports, mainly by reducing payments to farmers by 5 percent and lowering the annual ceiling on payments to $250,000, from $360,000.

Would reduce loan availability. Local impact: Several large corn and soybean growers in Indiana could be affected by the subsidy cuts, according to Kent Yeager of the Indiana Farm Bureau. The Kentucky Farm Bureau said the effect in that state clear. ENVIRONMENTAL PROTECTION AGENCY Spending: 5.6 percent National impact: Low-interest loans to states for water-quality protection projects would drop by one-third, to $730million, and funding to improve the aging water systems would be cut 83 percent. But more money lion, up 2.5 percent would be allocated to clean up the worst toxic-waste sites, and funding would increase by more than one-third for rehabilitating lesser contaminated sites known as bringing that budget to $121million.

Local impact: Unknown. Indiana Department of Environmental Management spokeswoman Amy Hartsock said, too soon to be able to assess potential effects on our LaJuana Wilcher, secretary of the Kentucky Environmental and Public Protection Cabinet, said of significant federal funding would hurt our efforts to clean up ENERGY $23.4 billion 2percent National impact: Spending for nuclear-waste disposal would increase by $79million, to $651million. President Bush wants to spend $56million to build what would be the first new nuclear power plant in the United States in three decades. Spending to secure nuclear material in Russia and newly independent states of the former Soviet Union would be $246million. Local impact: The budget includes $286million for research into reducing emissions and improving efficiency of coal power plants, including $68million for the Clean Coal Power Initiative, of which $18million is allocated to continue development of the Future- Gen coal-fueled, zero-emissions, electricity and hydrogen generation project.

Several states, including Kentucky, have expressed interest in being the home for the FutureGen plant. The budget also increases funding for other coal technologies. WASTE MANAGEMENT Spending: forenvironmental management program 7.7 percent. National impact: Would shut down federal support for oil and gas research, scale back money for a nuclear waste dump in Nevadaandexpand research into clean-coal technology. Local impact: The Paducah Gaseous Diffusion Plant would get $98million, or less than this year, for ongoing cleanup of radioactive and chemical contamination.

It would spend nearly $51million, a decrease, to continue work on convertinguranium waste to a more stable form. Security costs would risenearly $4million, to $11million. can do everything we are scheduled to do under the budget request been said Gregory Cook, spokesman for Bechtel Jacobs Co. LLC in Kevil, the lead contractor on the cleanup. JUSTICE DEPARTMENT $20.3 billion 1percent National impact: Raises FBI budget by 11percent, including increases for counterterrorism, intelligence and counterintelligence programs; increases Drug Enforcement Administration budget; slashes Community Oriented Policing Services (COPS) to $499million; eliminates the $297million State Criminal Alien Assistance Program, which pays local prisons and jails to house undocumented immigrants.

Local impact: Kentucky and Indiana both participate in COPS and immigrant-assistance programs. COPS helps put resource officers in schools, funds efforts to fight manufacture of metham- phetamines, pays for computer equipment and other programs. The immigrant-assistance program last year sent $232,297 to Kentucky and $471,000 to Indiana. COLLEGE FINANCIAL AID Spending: $78billion 6.8 percent Pell Grants, 5.4 percent National impact: The maximum annual Pell Grant for low-income college students would increase $4,150. Local impact: Some students may get larger Pell Grants, but other aid could be cut.

Jammie Mathes, 35, a senior at Indiana University-Southeast, praised the Pell Grant increase. hundred dollars enough, but take what I can at this Mathes said. TRANSPORTATION $57.5 billion 1percent National impact: Would eliminate operating subsidy and set aside $360million to run trains along the Northeast Corridor if the railroad ceases operating; the agency received this year in operating subsidiesand capital investment. Also would cut airport spending for relieving congestion and improving safety by 13.6 percent, or $472million, from Local impact: Would spend for highway planning and construction in Kentucky, up nearly $4million. Would spend for highways in Indiana, up about $44million.

Also, transit programs in Kentucky would receive up about $7million. Airport improvement funding would be at in Kentucky, down almost $12million. A look at some of the areas of local interest that are affected by President budget proposal Stacey Thompson probably have gone to college had it not been for the support she received through a federally funded program while attending Paul Laurence Dunbar High School in Fayette County. not only made me realize that I could go to college, but it gave me the motivation to want to said Thompson, who is working on her degree at the University of Louisville. That program, Upward Bound, is one of several targeted for elimination under President proposed education budget.

Bush proposes cutting almost $2billion in high school programs like Upward Bound, which offers low-income and first-generation college students awide range of help, from tutoring to financial-aidcounseling to summer college programs. In Jefferson County about 105 students in public and private high schools benefit from the program, which operates on a five-year, $2million federal grant, said Mary Thorpe, the director. really said Thorpe, noting 95 percent of students in the program go on to college. Bush also is calling for all federal spending on vocational education to be eliminated and redirected toward high school initiatives. Right now, Kentucky receives about $21million and Indiana about Mary Tiede Wilhelmus, an Indiana education department spokeswoman, said some programs slated for elimination, such as the family literacy effort called Even Start, quite successful because they involve the whole Indiana receives in federal funds for Even Start.

Kentucky receives about and serves more than 1,300 children, said Lisa Gross, a spokeswoman for the Kentucky Department of Education. In return for his cuts, Bush wants to spend $2billion on services to help struggling high school students, math and science partnerships and Advanced Placement tests. Those efforts would align with plan to require states to test students annually in math and reading in grades nine to 11. Bush also calls for more money for poor districts and the creation of a $500million fund to reward teachers whose students make progress. Education advocates in Kentucky said they were disappointed by proposal, especially after Gov.

Ernie budget also included cuts and minimal increases for schools. striking thing is that Kentucky schools are getting hit from both ends, from Washington and from said Bob Sexton, executive director Prichard Committee, an educational advocacy group based in Lexington. not going to create jobs by neglecting educa- tion in the state budget or in the federal Staff writer Dick Kaukas contributed to this story. By Sam Upshaw The Courier-Journal Stacey Thompson, a student at the University of Louisville, received support from the Upward Bound program. The program is one of several that could be eliminated under President proposed education budget.

AREA SCHOOLS Some academic programs are threatened By Nancy C. Rodriguez The Courier-Journal When Newburg struggled with urban decay increasing crime rates and more vacant buildings Louisville officials used a federal program to help revitalize the neighborhood. They set aside $3million from the Community Development Block Grant program to repair houses, buy abandoned property and offer down-payment assistance to low-income families trying to buy homes. The Bush administration yesterday proposed eliminating that block grant program by combining it with 17 other community development programs into a new program, called Communities The government spends more than a year on the 18 programs, the New York Times reported last weekend. Metro Mayor Jerry Abramson said yesterday it was too soon to know how the cuts would affect Louisville, but he said budget many working families in this community and destabilizes families that are struggling to do the right Louisville has used the $14million itreceives in block grantsto revitalize and improve the Russell and Norfolk neighborhoods and build community centers in Park DuValle and the Beechmont Center.

Terry Carmack, chief of staff for U.S. Rep. Anne Northup, R-3rd, said that as an appropriations committee member, Northup seen a lot of programs grow out of control without accomplishing a real He say if the block grant program is among those Northup thinks is out of control. Bennie Farrell, who lives in Newburg, said his neighborhood is beginning to improve, thanks in part to the block grants. seems like a bad time to change the horse in the middle of the he said.

The Newburg project, announced last year, would not be affected by the proposed changes, which would start in fiscal year 2006, if Congress approves them. Bush also has proposed eliminating the HOPE VI grant program, which has been used in Louisville to tear down the Cotter and Lang housing complexes and rebuild a new neighborhood of homes, apartments and townhouses called Park DuValle. Louisville is doing the same thing with the Clarksdale housing complex east of downtown. Michael Liu, assistant HUD secretary for public housing, said yesterday that the $40million Louisville received for the Clarksdale project in jeopardy because the city has made good use of the money. wish everyone would follow Liu said.

COMMUNITIES Block grants may face elimination Money was used for revitalization By Chris Poynter The Courier-Journal HOUSING AND URBAN DEVELOPMENT Spending: $28.5 billion, 11.5 percent National impact: Replaces community development block grant program with new economic development program for distressed communities and reduces funding. Increases funding for subsidized rent for low- income families. Local impact: Louisville could see a reduction in the $14million in community development block grants it received last year. $40million in federal funding for the Clarksdale redevelopment project is secure. Contributing to these summaries werestaff writersJoseph Gerth, Laura Ungar, James Bruggers, James Malone, James R.

Carroll, Bill Wolfe, Marcus Green, Deborah YetterandMark The Associated Press. spending figure does not include mandatory spending that is required by a law or laws enacted in previous years. VETERANS AFFAIRS $33.4 billion 2.7 percent. National impact: Would raise medical care spending from to with much of the increase coming from fees. Calls for higher-income veterans without service-connected illnesses or injuries to pay a $250 annual fee.

Also would raise prescription drug co-payments for such veterans to $15, from $7, for a30-day supply of medicine. Local impact: Any new fee would apply. The budget likely affect a plan to replace the Louisville VA Medical Center with astate-of-the-art facility, said Terry Carmack, spokesman for U.S. Anne Northup, R-3rd District. John Sterner, a disabled Vietnam veteran and activist in Louisville, said he think a fee would be fair taxing the disabled and elderly But Vernon Lile, another local Vietnam veteran, said he oppose afee limited to high-income veterans.

DEPARTMENT OF EDUCATION $56 billion, 1percent National impact: President Bush is shifting focus from early grades to high schools, with more than $2billion in help for struggling students, math and science partnerships and Advanced Placement tests. He would require state math and reading testing in grades nine to 11, an expansion of two years. At the same time, Bush would cut almost $2billion in popular high school programs deemed including vocational education, Upward Bound, Talent Search and GEAR UP. Local impact: Kentucky and Indiana would lose a combined in federal spending for vocational education. And endangered programs designed to help low-income students in college also would cost the two states millions in funding.

time there are cuts to education, those cuts never said Julie Scoski, who is the adult and family education director for the Jefferson County Public Schoolsin Kentucky. I THE A5.