Also, during the W administration much of the money for real science was redirected towards a manned mission to Mars. This caused terrible financial woes for the department I worked at at MIT for many years that does X-ray astronomy (The Center for Space Research). Quite a few people were laid off, including me, due to the CSR not being able to get the science funding from NASA it always had been able to get previously.
It's a classic anti-science move of forcing them to commit to an impossible project and then later lay into them for not making any progress and cut funding even more severely.
I saw the inflation calculation in the Wiki tables. You could even argue that inflation calculation is low, and that inflation has been far worse given the price of gold / oil / housing over the last 30 years.
My point was: NASA is doing just fine. They're fortunate to still be getting that much money year in year out. It's a lot of money.
http://en.wikipedia.org/wiki/Budget_of_NASA
Also, consider the fact that congress allocates the money going to individual project, not just the agency as a whole. NASA is not doing just fine.