Mr. Merriam,
 
Thank you for your reply, except I wish you had answered all of my questions.  I will address my concerns after each of your paragraphs to help keep it simple.  Your text is in blue.
 

Last year we estimated that Transportation could reduce its
 budget by $3.8 million.  At the same time we estimated the
 budget for 08-09.  Both are estimates of future spending
 which we have some control over.  You have pointed out
 budget line items that have not been fully expended and will
 not; therefore not a true determinant on how we are doing. ...   more »