The "cuts" Kennedy is talking about exist only in liberal-land and he is exploiting most people's lack of knowledge about how programs are actually funded in Washington. The difference is between what a program is "authorized" to spend (the maximum possible in any given year) and what is actually "appropriated" (or in this case, proposed to be appropriated by Bush)-- that is what is actually spent in a given year.
H.R. 1, the No Child Left Behind Act that Bush pushed through last year authorized spending at about $29 billion for programs within it. Bush's budget proposed spending $22 billion for those programs this year. By way of comparison Congress funded those programs at about $21 billion last year (HR 1 programs are almost half of the total Dept of Ed budget). Big surprise, programs are ALMOST NEVER funded at their fully authorized levels, especially in the first year of their existence. So what Kennedy is saying is that since Bush didnt ask Congress to spend the MAXIMUM possible in the first year of the program's existence, that to him is a cut. Go figure.