FY 2011 President's Budget

The President has submitted his budget to Congress -- documents are online at the OMB website. Before you get too carried away analyzing all the details (an activity that will consume Washington over the next week -- similar to a shark feeding frenzy), please remember that this is the beginning of a very long process. The process is shown in a nifty graph at the Wall Street Journal. And even that graphic shows the process the way is it supposed to work, with the President signing the appropriations bills and reconciliation bill before October 1. In real life, things often get tied up in continuing resolutions and omnibus appropriations bills.

While not getting into all the details, there is one part of the President's budget that I would like to highlight. Every year, there is an investment budget in the Special Topics portion of the Analytical Perspectives section that includes The analysis includes investments in physical capital, R&D and education and training. Education and training expenditures include aid for higher education through student financial assistance, loan subsidies, the veterans' GI bill, and health training programs, education programs for the disadvantaged and individuals with disabilities, training programs in the Department of Labor, and Head Start. This can be the starting point for a look at how much the federal government invests in intangible assets (see earlier posting). While it is not the complete picture, it does provide some overview (as R&D and education/training are the largest parts of our intangible investments).