It sounds like you're ready to get promoted. You talk about budgets, long-term planning, etc.
One of the keys to power is to take the credit for other people's work. That's what he's doing. He's good at it, or he wouldn't be getting away with it. If you truly dislike him, and don't really care what happens to his future, only what happens to yours and your co-workers, you sound ready to lead them.
You need to devise a plan of attack. It may take you months to acheive this goal, but long-term planning and a little deception will get you everywhere.
1. The first rule is to never look better than your boss. Never appear (at least to him) to be funnier, smarter or better at anything. If he has any insecurities, they'll be played on and he'll suspect you're either up to something.
2. Conceal your true intentions - This goes for you co-workers too. If they're your friends, doubly so. Trust friends outside of work, trust co-workers to do their jobs. This distinction is curcial to your eventual success. If your boss doesn't know what you're up to, the easier for you to plan it.
3. Say less than necessary - The more you say, the more common you appear and the more likely you are to say something stupid. Powerful people tend to impress and intimidate by saying very little. It's hard to get a reading on someone that doesn't reveal their hand. I like to occaisionally use vague statements to enhance this reputation. It also builds an air of mystery around you. People are naturally attracted to the mysterious. This will enhance your stature further.
4. Win through actions not words - You could argue with someone for years, and they'd never see your point, or even if they did, they'd be too pig-headed to let you win. It's admitting defeat. If you PROVE it though, and publicly, there' no denouncing it.
5. Pose as a friend to your boss, but really you're spying on him (Keep your friends close, but your enemies closer) - Now don't take this the wrong way. Spying can simply mean that you're probing him for weakness, not looking for ammunition to lock him up or get him fired. Weakness can be found through casual indirect questions. This is best done at social events, or in some kind of relaxed atmosphere. By Suppressing your own personality, you can make people reveal more about themselves than you can possibly imagine. If suspect he's lying about something, act as though you believe the lie, and he'll prove he is for you.
6. Crush him - Once you do attack, make sure that you don't go half-way, or he'll seek revenge. He must be totally crushed. No hope for his reputation or job.
Make no mistake, you're going to war. If you like your company and your co-workers, fight for it. Use deception, coupled with selective honesty. I can't give you specifics on when the right time to go to war is, however, that you'll have to decide based on particular situations and his own strength within the organization. You're best not to attack until his defenses are down, and you're best not to do it while he's at the height of his power.
You could try a number of strategies, such as building up his own confidence to an unreasonable level, and watching him explode.
Whatever the result, go to the mattresses. It's time to take what's yours.
Enjoy...