WHEREAS:

States are entering the fourth year of the fiscal crisis with cumulative deficits totaling over $235 billion so far and with projections of over $40 billion in additional deficits in fiscal year 2005; and

WHEREAS:

Many states are meeting their balanced budget requirements in fiscal year 2004 in part with reserve-fund transfers, budget cuts, deferred spending, and borrowed funds; and

WHEREAS:

As a result, in part, of lobbying by AFSCME, the federal government is presently providing $20 billion in fiscal relief to states, spread out over 18 months. Current year budgets would be in far worse shape without this federal fiscal relief, but most states are assuming that the relief will expire at the beginning of fiscal year 2005 and therefore will not be available to help fill budget shortfalls next year; and

WHEREAS:

There have been over 225,000 state and local government layoffs announced in the past year and a half and public sector workers have experienced wage givebacks and freezes and increased health insurance payments; and

WHEREAS:

Many AFSCME contracts are still open months or, in some cases, years after they expired, while others are not funded. Even where contracts are settled, bargaining has been extremely difficult; and

WHEREAS:

State and local governments must still provide crucial public services that protect our communities; care for our young, old and sick; educate our citizens; build and maintain important infrastructure; protect our natural resources and assist working families; and

WHEREAS:

The public employees who deliver these crucial public services deserve good wages, benefits and employment security; and

WHEREAS:

The Bush administration has ignored the continuing plight of state and local governments and has taken actions that actually exacerbate the fiscal crisis. In particular, the Bush tax cuts enacted over the last three years have shifted massive resources from Social Security, Medicare, education and state and local grant-in-aid programs to a small number of wealthy individuals.

THEREFORE BE IT RESOLVED:

That AFSCME continue to advocate for federal aid for state and local governments, including an extension of the expiring federal fiscal relief, and oppose efforts to make the Bush tax cuts permanent; and

BE IT FINALLY RESOLVED:

That AFSCME continue to play a leadership role in resolving this fiscal crisis and restoring fair and adequate revenues for state and local governments by mobilizing our members, forming coalitions with like-minded allies and supporting elected officials who support these goals.

SUBMITTED BY:

International Executive Board