Please explain to me again how Republicans are the "smaller government" party

WaPo:

President Bush's second-term agenda would expand not only the size of the federal government but also its influence over the lives of millions of Americans by imposing new national restrictions on high schools, court cases and marriages.

In a clear break from Republican campaigns of the 1990s to downsize government and devolve power to the states, Bush is fostering what amounts to an era of new federalism in which the national government shapes, not shrinks, programs and institutions to comport with various conservative ideals, according to Republicans inside and outside the White House.

Bush is calling for new federal accountability and testing requirements for all public high schools, after imposing similar mandates on grades three through eight during his first term. To limit lawsuits against businesses and professionals, he is proposing to put a federal cap on damage awards for medical malpractice, to force class-action cases into federal courts and to help create a national settlement of outstanding asbestos-related cases.

On social policy, the president is pushing a constitutional amendment to outlaw same-sex marriage in the states and continuing to define and expand the federal government's role in encouraging religious groups to help administer social programs such as community drug-rehabilitation efforts.

"We have moved from devolution, which was just pushing back as much power as possible to the states, back to where government is limited but active," said John Bridgeland, director of Bush's domestic policy council in the first term. Bridgeland and current White House officials see Bush's governing philosophy as a smart way to modernize the government, empower individuals and broaden the appeal of the GOP.

Bush maintains a stated desire to streamline the government. On Monday, he sent Congress a budget that would eliminate or consolidate 150 programs. But a growing number of conservatives are uneasy with what they deride as "big-government conservatism."

There are going to be two things to watch as Bush makes his push towards more Disciplinarian Daddy Government: 1) How much support he gets from Republicans; and 2) how much support he gets from moral scold Democrats (*cough* Lieberman *cough* Obama *cough* Clinton) who see this as an opportunity to reach around -- I mean across -- the aisle.