Record White House deficit projection to fuel campaign fight on economy By ALAN FRAM Associated Press Writer WASHINGTON - The White House's projection of a record federal deficit that could approach $450 billion this year will further fuel a campaign-season dispute over President Bush's handling of the economy. Bush's budget office planned to release its latest forecast Friday. Its magnitude, described by congressional aides speaking on condition of anonymity, will easily surpass last year's $375 billion, the largest ever in dollar terms. Republicans are ready to argue that the number underscores the economy's upturn because it shows improvement over expectations of early this year. Democrats, meanwhile, will say it underscores the decline of the government's fiscal health under Bush, who has seen three straight years of worsening annual shortfalls following four consecutive surpluses under President Clinton. Some congressional aides said the report might also project an increase in spending by Medicare, the government's $300 billion health insurance program for the elderly and disabled. That could further heighten concerns about the program's solvency, already in jeopardy over the next two decades with the impending retirement of the huge baby-boom generation. Medicare's anticipated rapid growth in coming years is expected to be a major engine keeping the budget in the red. The report's release was coming two weeks after an often-ignored July 15 deadline, a delay White House officials attributed to a desire for accurate numbers. Friday was also a day after Democrats ended their national convention in Boston, meaning their presidential candidate, Sen. John Kerry, D-Mass., and others could not use that podium to cite the findings to their nationwide television audience. In an era of war, terrorism fears and an economy that is still shaky in some parts of the country, there is scant evidence the public is worried about the budget's travails. Democrats hope to use the shortfalls as a symbol of how tax cuts Bush has pushed through Congress have caused red ink to spread, soaking up money for education, domestic security and other priorities. Republicans have blamed the invasion of Iraq and recession for the fiscal problems. They also say the deficits are manageable because they are only about 4 percent the size of the U.S. economy _ well below the 6 percent reached under President Reagan. In February, the White House projected a $521 billion shortfall for 2004, while in January the nonpartisan Congressional Budget Office estimated this year's deficit would be $477 billion. Reflecting stronger revenue collections than anticipated _ a sign of more vigorous economic activity _ the congressional office said in May that it believed the deficit would be smaller still, but it did not provide a figure. The congressional forecasters have estimated annual federal deficits will stay near $300 billion until 2011. But that assumes Bush's tax cuts expire after 2010 _ which many legislators say is politically unlikely. The federal budget year runs through Sept. 30