Letter to Representatives opposing the "Deficit Reduction Omnibus Reconciliation Act of 2005"

November 8, 2005

Dear Representative:

On behalf of the 1.4 million members of the American Federation of State, County and Municipal Employees (AFSCME), I urge you to oppose the "Deficit Reduction Omnibus Reconciliation Act of 2005." This spending bill turns our nation's priorities upside down by first slashing $53.9 billion from services that are vital to poor and working families and then, in the upcoming tax bill, draining $70 billion from the treasury to pay for tax cuts targeted towards the wealthiest Americans. When the costs of Katrina relief, avian flu prevention, and the Iraq and Afghanistan wars are added to the mix, the draconian and unfair program cuts contained in this budget bill will not produce one dime of net deficit reduction. Rather, it is a dishonest attempt to partially pay for the enormous, reckless tax cuts that will primarily benefit the wealthiest of Americans.

We urge Congress not to use Katrina relief as a fig leaf for budget cuts to safety-net programs. AFSCME strongly supports legislation that will provide substantial federal financial support for Katrina victims to rebuild their lives and their city. However, it is dishonest and cynical to require budget offsets for Katrina costs when the congressional leadership refuses to offset the costs of tax cuts or supplemental funding for Iraq and other purposes. Moreover, all of the programs that are slated to be cut in this budget bill benefit Katrina evacuees as much as or perhaps more than others in our country.

The proposed federal budget cuts also represent an enormous cost shift to the states. Poor and working families who benefit from the programs slated for cuts will continue to need these services. States and localities will be faced with making terrible choices among bridging the gap in nutrition assistance, health care, college aid, foster care, child support collections or other priority areas. States simply do not have the revenue-raising capabilities to step in and pay for Congress' commitments and responsibilities.

The hardships that will be caused by the budget reconciliation bill read like a Dickens novel:

$11.8 billion in Medicaid cuts: Poor women, children and seniors will face increased cost-sharing and new premium payments in the Medicaid program to pay for the bill's $11.8 billion in cuts. Strong evidence exists that higher costs result in low-income people going without needed care. The bill also allows states to restrict benefit coverage for some beneficiaries, which could negatively affect about six million children. Medicaid cuts will reduce funding to public hospitals, nursing homes, and primary care offices and clinics, reducing the services they are able to provide.

$844 million in Food Stamps cuts: The Food Stamp program is vital to respond to the nutritional needs of low-income Americans, including Katrina victims and people facing skyrocketing energy prices this coming winter. According to the Congressional Research Service, the budget bill would remove an estimated 225,000 people from the program, largely working-poor families with children. Forty thousand children who lose food stamps under this provision could also lose access to free school meals. In addition, 70,000 legal immigrants will lose Food Stamps until they have been in the United States for at least seven years. If these cuts are enacted, states will face increased administrative expenses to reprogram computers, retrain caseworkers and reeducate clients.

$4.9 billion cut in child support enforcement, a cut of nearly 40% in 2010: Reducing the federal matching rate for child support enforcement activities in the states is an example of penny wise and pound foolish policy. The CBO estimates that the reconciliation bill's reduction in the federal commitment to child support programs will result in custodial parents receiving $8 billion less child support over five years and $24 billion less over 10 years. Many custodial parents are single mothers already struggling to provide basic necessities for themselves and their children. They will be forced to seek help from government programs if their child support goes uncollected.

$577 million in "savings" by denying federal assistance to thousands of abused or neglected children in foster care: The budget bill would reduce federal foster care assistance for grandparents or other family members who have stepped in to provide care for their relatives' children. It also limits states' eligibility for federal funding by creating stricter licensing requirements. This is an example of enormous cost shifts to the states. States would have to choose between shortchanging other important state initiatives or cutting foster care services and increasing caseworkers' workloads, which are already dangerously high in many states and counties.

Fewer children will receive child care subsidies: By folding TANF reauthorization into budget reconciliation, the House Ways & Means Committee increased (and for mothers of very young children, doubled) the required work hours per week. But, the budget bill fails to provide sufficient child care funding to keep pace with inflation, and does not even begin to cover the extra child care required for parents to meet more stringent work requirements. It is estimated that 330,000 fewer children will receive federally-subsidized child care in 2010 than in 2004 if this budget is adopted.

$14.3 billion in cuts to student aid: Every year, access to higher education becomes a more critical factor in achieving a lifetime of economic success. This budget bill reduces support for low-income college students by increasing the interest rates and fees they must pay, and reducing subsidies to lenders. These changes are estimated to cost the typical student up to $5,800 in additional interest and fees over the life of their loans. It is simply wrong to force our nation's students and their families to shoulder the burden of our country's debt.

AFSCME urges you to stand up for America's families and make the choice that reflects our country's most important priorities. Vote no on the budget bill and oppose this destructive budget reconciliation process.


     Sincerely,

     Charles M. Loveless
     Director of Legislation

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