The president's budget.

• Author: Bird, Michael
• Position: WHAT IT MEANS FOR STATES - Barack Obama

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Valentine's Day opened the federal budget season with President Obama releasing his 2,402 page, 8-pound, $3.7 trillion FY 2012 budget book.

Reaction has varied based on political perspective, and it's an annual ritual for many to label any president's budget as "dead on or before arrival." That has predictably happened this year. The proposal, however, like its predecessors, does become a focal point for congressional deliberations, spending tugs of war and resolution of differences that already are well underway.

More important to state lawmakers, it sends several messages that might be lost in the usual partisan jockeying. Here are some of the most important aspects of the president's budget for those concerned about state-federal relations.

Discretionary spending. Domestic discretionary non-security spending, home to a world of state-federal programs, would be frozen for five years under the president's proposal. This mirrors recommendations from some deficit reduction study groups, but House Republicans will likely view it as a minimum down payment for curbing the federal government's spending appetite.

Reductions. The president wants to eliminate or reduce spending on more than 200 programs. That will be just the starting point for Congress as it attempts to exceed the president's target in its own budget resolution and appropriation bills. Several popular state-federal programs are on the "reduction" list. These include the Clean Water and Drinking Water State Revolving Funds, the Low Income Home Energy Assistance Program, the State Criminal Alien Assistance Program and several block grants. Even with these reductions, the president proposes giving states flat funding when compared to FY 2010 and FY 2011.

Competition. Competitive grants are emphasized throughout the budget, particularly for education, labor and transportation programs. These grants take a page from the approach the administration used in its Race to the Top program, under which states applied for competitive grants to help spur education reform. The budget suggests competitive challenges for states in the areas of workforce innovation, early learning, improving college access and transportation. These will play to mixed reviews and an uncertain fate in congressional deliberations.

Block grants. The president's budgets offers up a "win some, lose some" scenario for state lawmakers. The losers: The Preventive Health Block Grant, which is...