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Friday, February 27, 2009


D.C. Voting Measure Clears The Senate
Added Gun Language Might Pose a Problem
By Mary Beth Sheridan and Hamil R. Harris
Washington Post Staff Writers

In $3.6 Trillion Budget, Obama Signals Broad Shift in Priorities
THE PRESIDENT’S BUDGET would raise taxes on the highest-earning Americans, create
a $1.2 trillion deficit in 2010 and curtail Medicare payments to insurance companies
to pay for a $634 billion health-care fund for the uninsured and a $150 billion energy
package. A look at both sides of the balance sheet:
Where the money comes from:
Total Revenue

Where the money goes:
Total Spending DISCRETIONARY T

Defense $728 billion

Bold Agenda for Social Spending, Energy and Taxes Faces Fierce Fight
By Lori Montgomery
Washington Post Staff Writer

The Senate passed a bill yesterday that would give the District a voting seat in
the House of Representatives, but lawmakers attached language strongly opposed by
city leaders that strips most local gun-control laws. The gun amendment complicates
the D.C. vote bill’s passage into law, because the legislation will have to be
reconciled with a companion bill in the House with no gun provisions that is expected
to be approved next week. Some D.C. officials said it was ironic that the Senate
bill granted the city full representation in the House while also overruling the
District’s decisions on a key local issue. Del. Eleanor Holmes Norton (D), the
city’s nonvoting House delegate, said she was overjoyed at the passage of the votingrights
bill. She has fought an uphill battle for years for District residents to have a
greater voice in Congress. “I stand in the shoes of residents of the city who have
lived without the vote and died without the vote,” she said after emerging from
the Senate floor, where she anxiously watched the vote. The bill squeaked past the
60-vote threshold it needed to pass, under a bipartisan agreement that sped up the
process. Six Republicans voted “aye” to produce a 61 to 37 result. Norton predicted
that the bill would clear the House easily, setting up a closed-door meeting between
negotiators from both chambers who will have to decide what to do about the gun language.
The Maryland and Virginia senators vot-

Individual income taxes $1.1 trillion

Other discretionary $675 billion

Corporate income taxes $249 billion

$2.4 trillion

$3.6 trillion

Social Security $695 billion

MAN NDATOR RY

Social Security and other payroll taxes $939 billion Excise taxes $78 billion Estate
and gift taxes $20 billion Customs duties $24 billion Other $38 billion Deficit:

Medicare $453 billion Medicaid $290 billion Other mandatory $575 billion

$1.2 trillion
O OTHER

Interest on debt $178 billion

Worst Deficits Since WWII
5% Budget deficit or surplus as a percentage of gross domestic product

Potential disaster costs $11 billion











See VOTE, Page A5


Deficits worse than –8%

ANALYSIS


‘Combatant’ Case to Move From Tribunal To U.S. Court
By Carrie Johnson and Julie Tate
Washington Post Staff Writers

Ambitious Blueprint a Big Risk The President Is Willing to Take
By Dan Balz
Washington Post Staff Writer




SOURCE: Office of Management and Budget
BY KAREN YOURISH AND LAURA STANTON — THE WASHINGTON POST




The Justice Department is preparing to announce criminal charges against Ali Saleh
Kahlah al-Marri for allegedly providing material support to al-Qaeda terrorists,
sources said, a groundbreaking step that would place the alleged sleeper agent in
the purview of the U.S. courts rather than before a military tribunal. Marri is the
last remaining “enemy combatant” in the United States, and he has spent 51⁄2
years in a military brig in South Carolina. Indicting him in a federal district court
in central Illinois could avert a Supreme Court ruling that would tie the Obama administration’s
hands in dealing with future terrorism suspects. Lawyers for Marri said yesterday
that they will press ahead for a Supreme Court hearing in April, hoping to use his
case as a vehicle to formally repudiate the Bush administration’s position that
enemy combatants can be held indefinitely by U.S. authorities. Justice Department
officials are expected to argue that their decision to seek an indictment of Marri
renders the Supreme Court case moot and that it should be dismissed, said the sources,
who spoke on the condition of anonymity because the case is at a delicate stage.
Justice Department and White House officials declined to comment on Marri yesterday,
as a federal grand jury in Peoria, Ill., met for several hours to consider his case.
Criminal charges, which could include conspiracy, could be unveiled as early as today,
the sources said.

Political Coverage
K CHIEF ‘PROPELLER HEAD’: Budget director Peter Orszag has outsize influence
among President Obama’s inner circle of wonks. A6 K WHO GETS WHAT: An agencyby-agency
breakdown. A7

President Obama’s first budget — with its eye-popping $1.75 trillion deficit,
a health-care fund of more than $600 billion, a $150 billion energy package and proposals
to tax wealthy Americans even beyond what he talked about during his campaign —
underscores the breadth of his aspiration to reverse three decades of conservative
governance and use his presidency to rapidly transform the country. But in adopting
a program of such size, cost and complexity, Obama has far exceeded what other politicians
might have done. As a result, he is now gambling with his own future and the success
of his presidency. William A. Galston of the Brookings Institution cited three parallels
to Obama’s far-reaching program: Franklin D. Roosevelt’s 1932 New Deal blueprint,
Lyndon B. Johnson’s 1965 Great Society agenda, and Ronald Reagan’s 1981 call
to dramatically

limit the size and power of government, which set the framework for public policy
debate ever since. “A consequence of the economic events of the last two years
has been to blow up that framework,” Galston said. “It has lost substantial public
credibility. President Obama now has his chance to make his case for a fundamentally
different approach.” But Galston outlined a series of obstacles that stand in Obama’s
path, beginning with sticker shock. The numbers in the new budget are unlike anything
the country and its elected leadership are used to dealing with. Not only will the
current deficit reach $1.75 trillion, next year’s will also top $1 trillion and
the deficits will remain above $500 billion until fiscal 2019, the last year projected
in yesterday’s document. Will Congress simply choke on the size of those numbers?
Audacity has always been Obama’s stock

President Obama delivered to Congress yesterday a $3.6 trillion spending plan that
would finance vast new investments in health care, energy independence and education
by raising taxes on the oil and gas industry, hedge fund managers, multinational
corporations and nearly 3 million of the nation’s top earners. The blueprint, meanwhile,
would overhaul programs across the federal bureaucracy to strengthen assistance for
millions of people who have borne the consequences of what Obama called “an era
of profound irresponsibility,” helping them pay for college, train for better jobs
and save for retirement while taking less of their earnings in taxes. The ambitious
agenda for the fiscal year that begins in October would not come cheap. This year’s
budget deficit, swollen by spending to combat a severe recession, would hit a record
$1.75 trillion, or 12.3 percent of the overall economy, under the president’s plan,
the highest since 1945. While Obama inherited the bulk of that gap, his budget would
make room for a fresh round of spending that could hit $750 billion to prop up troubled
financial institutions. Next year’s deficit would approach $1.2 trillion. But Obama
proposes to cut that figure roughly in half by the end of his first term, in large
part by levying nearly $1 trillion in new taxes over the next decade on the nation’s
highest earners, defined as families with gross income of more than $250,000 a year.
In unveiling the 134-page volume that outlines his spending priorities, Obama acknowledged
that his proposal would “add to our deficits in the short term to provide immediate
relief to families and get our economy moving.” But he argued that the economic
crisis should not be used as an excuse to delay costly investments in-

See BUDGET, Page A6

Financial Coverage
K $750 BILLION MORE? Obama administration hints banking system may need additional
aid. D1 K KEY HURDLE IN AUTO TALKS: Automakers seek to restructure retirees’ health
care benefits. D1 K AID FOR EASTERN EUROPE: World Bank to offer $31 billion to ailing
banks and businesses. A10 K SPLIT VIEWPOINTS: Local residents debate plan to raise
taxes on high-income families. B1

See ANALYSIS, Page A8

INSIDE
THE NATION

Media Ban Lifted at Dover
The secretary of defense will let the families decide if photos and videos are allowed
when the remains of fallen soldiers are returned from overseas. A2

Out-of-Work Financiers Reap Dividends of Seeing the World
By Joshua Partlow
Washington Post Foreign Service

Ex-CIA Official Sentenced
Kyle Foggo, who pleaded guilty to corruption for steering lucrative contracts related
to Sept. 11 to a friend, gets 37 months. A2

Clinton to Expand Efforts
The secretary of state says she will talk regularly with Pakistan and Afghanistan
officials in unprecedented A4 trilateral meetings.
THE REGION
BY PRESTON KERES — THE WASHINGTON POST

STYLE

SPORTS

New Director of Hirshhorn
The Smithsonian selects Richard Koshalek, 67, completing the turnover of leadership
among its C1 national art galleries Movies: “Two Lovers” and “Three Monkeys”
open STYLE & WEEKEND today.

Capitals Beat Thrashers
Brooks Laich scores the first goal before the 10th straight sellout at home. E1

See MARRI, Page A13

K Senators will review the CIA’s handling of detainees. | A3 K U.N. faults foreign
agents who questioned terror suspects. | A10

Teen Death Blamed on Flu
Health officials are urging all people to get flu shots after a second Maryland boy
suddenly dies of flu-related symptoms. B1

Nationals Fire Jose Rijo
The team also relocates its training facility in the E1 Dominican Republic.

RIO DE JANEIRO — When Deutsche Bank determined that strategist Rod Manalo was,
in the merciless language of hard times, “redundant,” it was an abrupt and humbling
end to a seven-year career in finance. But Manalo, 30, has not been trudging the
gray streets of London where he was based looking for work. This week, he was in
the sundrenched Brazilian resort city of Florianopolis, taking surfing lessons and
dancing in throbbing nightclubs amid Carnival revelers. That was after he had snowboarded
in the Alps, golfed in Florida and prepared for a year-long world journey that he
expects will take him to the Amazon, Antarctica, Australia and beyond. “Decent
finance jobs are nonexistent. Few hedge funds and no investment banks are hiring.
If I were to find a job, I’d just fear losing it again, would continue to watch
marDAILY CODE

kets drop and would expect little or no bonus,” said Manalo, who was fired in December
from his position as a vice president in risk arbitrage. Apart from occasionally
watching his investments, he said, “I am fully focused on traveling.” One byproduct
of the economic blood bath of the past several months has been a bumper crop of relatively
young and wealthy but out-of-work financiers. Unemployment in the financial sector
in the United States doubled from 285,000 in January 2008 to 571,000 last month,
according to the U.S. Bureau of Labor Statistics. There are “pink-slip parties”
in New York for the newly untethered to mingle and match. Business school applications
have soared for those seeking academic shelter. But some financial refugees have
fanned out around the globe in pursuit of leisure, achievement or to explore something,
anything, outside a cubicle’s confines. And if a dozen or


See FINANCIERS, Page A11

INSIDE » METRO • STYLE • BUSINESS • SPORTS • WEEKEND
Classifieds............F1 Comics .............C7-9 Editorials ...........A16 Lotteries...............B4
Movie Listings ...................................Weekend Movie Reviews .....................Style
& Weekend Nightlife....Weekend Obituaries ........B6-7

ONLINE » washingtonpost.com
Stocks ..............D4-6 Television.............C6 The World .........A10 TV Sports
.............E2

PAGE B5


Contents  2009 The Washington Post