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KENNEDY ON PRESIDENT BUSH’S MISGUIDED BUDGET

February 4, 2008

FOR IMMEDIATE RELEASE

Washington, D.C. – Today, Senator Edward M. Kennedy released the following statement on President Bush’s budget:

“The President fumbled yet another opportunity to put forward a budget that demonstrates real understanding of the challenges our country is facing today and that provides real relief for hardworking Americans. I look forward to next year and a Democratic President whose budget will honor our country’s true priorities.”

Fact sheets on the effects of President Bush’s budget are below:

BUSH EDUCATION BUDGET JEOPARDIZES OPPORTUNITIES FOR AMERICA’S FAMILIES

Proposes No New Investment to Strengthen our Nation’s Public Schools

Takes Away New Benefits to Help Student Borrowers Afford Loan Payments

Guts Loan Forgiveness Program for those in Public Service Jobs

Senator Edward Kennedy

“Today more than ever, a quality education is the gateway to achieving the American dream. Education is about opportunity, but it’s also about our nation’s economic prosperity and our national security. Unfortunately, once again, President Bush has failed to put his money where his mouth is with respect to public education. His rhetoric is to leave no child behind but his budget leaves 3 million children behind – and cuts critical education programs from early education through adulthood. On top of funding cuts, he proposes misguided, anti-student policies in the loan programs that take away new benefits for student borrowers enacted last year. His proposals would cut critical assistance for borrowers in low paying jobs struggling to repay their loans and dramatically cut the number of individuals eligible for public service loan forgiveness.

The President proposes no new investment to strengthen our nation’s public elementary and secondary schools. As we work to reauthorize the Elementary and Secondary Education Act this year, I am particularly concerned that the President has once again proposed inadequate funding for the law’s important reforms. He has used the same old tactics of robbing other education priorities to pay for his modest increases for school reform. His budget once again siphons scarce resources from our public schools to create a new voucher program, and he eliminates the existing afterschool program in favor of an $800 million voucher-based alternative. Our schools and children deserve more than accounting gimmicks – they need new resources to make progress on reform.”

President Bush’s Fiscal Year 2009 budget provides no increase in overall education funding – freezing funding at $59.2 billion in discretionary education funding.

President Bush’s paltry proposed increases in funding for the Title I of the No Child Left Behind Act and a $300 million voucher program are more than offset by the elimination of 48 programs ($3.3 billion), including Perkins career and technical education, Tech Prep, Supplemental Education Opportunity Grants (campus-based aid), LEAP, Education Technology State grants, Even Start, Smaller Learning Communities, Arts in Education, School Counseling, and Special Olympics Education Program. He also proposes significant cuts to numerous other programs including Safe and Drug-Free Schools State grants, Teacher Quality State grants, and funds for Teaching American History. Once again robbing Peter to pay Paul. His budget proposal:


· Proposes “rearranging the deck chairs” on competitiveness initiatives:

The President’s budget proposal includes irresponsible, anti-student policies for student loan borrowers and barely keeps pace with increases to the maximum Pell Grant delivered by the Democratic Congress last year in the College Cost Reduction and Access Act:

Corporation for National and Community Service

 

THE BUSH BUDGET IGNORES THE URGENT NEEDS OF WORKING FAMILIES

"Just as the President’s shortsighted policies have allowed our economy to spiral into recession, his budget leaves working families to weather the storm alone. Millions of Americans are receiving pink slips and seeing the American Dream slip away—but instead of helping, this budget slashes funding for needed programs for workers and their families.” — Senator Edward M. Kennedy

At a time when the economy is failing and Americans are more financially squeezed than ever, the President's budget drastically cuts or even eliminates vital programs to support working families. Unemployment is on the rise, and in this Bush economy millions of out-of-work Americans simply can’t find a job. Yet the President’s budget eliminates programs that help workers to find new jobs and train them for new careers. It also falls far short of providing the necessary resources to protect those workers who do have jobs.

Unemployment Insurance. President Bush’s budget turns a deaf ear to the nearly 8 million Americans who are unemployed and having a harder time finding new work, eliminating State Employment Service grants for programs that help workers find new employment.

Job training. As jobs in manufacturing and other industries continue to disappear, job training for displaced workers is more critical than ever. These services help workers learn new skills and find meaningful jobs in growing sectors, and job training also helps to provide the competitive workforce our new economy demands. Annual shortfalls mean that there are not nearly enough job training slots for the 151,400 workers currently unemployed in Massachusetts. But the President’s budget cuts funding for training and employment services by $484 million, to just under $3 billion—a decrease of 14 percent. This includes:

Trade Adjustment Assistance. Since 2001, increasing numbers of workers have used this critical program, which provides income support benefits and job training assistance to workers who lose their jobs because of trade. At a time of rising unemployment and increased competition for work, the Trade Adjustment Assistance for Workers program is more important than ever. The President’s budget proposes no increase in training funds and only a small increase to worker benefits, despite the fact that many states consistently run out of TAA funds before the end of each year.

Worker Safety and Health. No American family should have to worry whether their loved ones are going to come home at the end of a shift. Too often, American workers are asked to put their lives on the line while employers take advantage of the Bush Administration’s lax enforcement of our nation’s safety rules. Again, the President’s budget does not make the safety of American workers the high priority that it should be.

International Labor Affairs Bureau. American workers deserve to compete on a level playing field in the global economy—but this requires raising labor standards around the world. The vital first step is to end abusive labor practices like child labor. Yet the President’s budget drastically cuts funding for the International Labor Affairs Bureau’s global efforts to combat child labor—reducing the agency’s budget by $66.1 million, an 82% decrease.

THE BUSH BUDGET SHOULD SUPPORT EFFECTIVE ANTI-POVERTY PROGRAMS

"There continue to be 37 million Americans, including 13 million children, living in poverty today. In these hard economic times, working families are suffering, and more will fall into poverty without decisive action. Parents are being forced to choose between feeding their children or heating their homes. Budgets represent a nation’s morals and priorities and this one falls far short. We must do more for the most vulnerable in our society.” — Senator Edward M. Kennedy

Under President Bush, those at the bottom of the economic ladder have been left farther and farther behind and are now facing a “perfect storm” where each new challenge can drag a family under. Under his policies, wages have remained nearly stagnant after inflation, rising only 6%. while the cost of gas has risen 73%; health insurance, 38%; college tuition, 43%; and housing, 39%. These extraordinary increases in prices force families to make impossible choices between paying for fuel, paying for groceries, or paying their mortgage. Parents who choose to keep their children warm and fed risk losing their home. Yet the President’s budget shortchanges the programs that can stop this domino effect and help families in crisis get back on track:

HEALTH CARE

The Bush budget continues the assault of this Administration on affordable, quality health care for working families. It includes punitive cuts to Medicare, Medicaid, and other health care programs – cuts that strike at the heart of working families’ ability to afford quality health care. The budget squanders the potential of the century of the life sciences by under-funding NIH, particularly in its most innovative programs that cut across disciplinary lines. As a result, more that 4 in 5 new grant proposals judged meritorious by peer review, will go unfunded.

The budget fails to protect America’s families from pandemics and terrorist attacks, by cutting key programs that invest in America’s hospitals. It further erodes the ability of FDA to keep America’s families safe from contaminated food and unsafe drugs by proposing significant real cuts in FDA’s budget – then trying to disguise them through budgetary smoke and mirrors. And the budget spurns opportunities to address the disparities in health that affect millions of Americans by cutting the budget for key programs, such as investment in a diverse health workforce.

The specifics are below:

Medicare

The President’s budget proposes a $12.8 billion cut to Medicare in 2009 ($182.7 to be cut over 5 years). This includes an almost $4 billion decrease to inpatient hospitals and an almost $1 billion cut to Skilled Nursing Facilities. It also includes a $1 billion cut eliminating duplicate hospital Indirect Medical Education (IME) payments for Medicare Advantage beneficiaries and an almost $1 billion reduction over the next three years in the IME add-on – the special payment to teaching hospitals to cover the higher patient costs they incur. Additionally, the budget proposes to reduce hospital Disproportionate Share Hospital payments – the payment adjustment that compensates hospitals for the higher operating costs they incur in treating a large share of low-income patients – by 30 percent over the next 2 years.

Medicaid

The budget proposes a total of $17.3 billion in reductions over the next five years. The reduced spending comes from legislative changes in Medicaid that would reduce federal Medicaid funding by a net of $1.5 billion over five years and $5.1 billion over ten years, as well as regulatory changes that would reduce federal funding by an additional $12.2 billion over five years. A substantial majority of these Medicaid changes would be achieved by shifting costs to states. That likely would induce many states to reduce eligibility or scale back health benefits for low-income Medicaid beneficiaries, possibly by using the authority that the just-passed budget reconciliation bill gives states to increase co-payments, impose premiums, and narrow the health services that Medicaid covers.

• Elimination of Graduate Medical Education payments in Medicaid (one of the Medicaid cuts) would be $40 million for Massachusetts hospitals in 2009, $200 million over 5 years.

Children’s Hospital Graduate Medical Education

The Administration is zeroing out this program. This is a $300 million cut, including $21 million for Children’s Boston Hospital.

Community Health Centers

Community health centers will get a small increase, about 1% -- not sufficient to keep up with inflation.

NIH

This year’s budget request remains the same as last year- $29.5b. This represents a loss of funding in real terms.

• The FY 2009 Budget request for the National Center on Minority Health and Health Disparities is $200 million, a zero increase from last year’s budget. The FY 2009 request grossly underfunds programs that address the medical needs of our most underserved communities to increase cost effectiveness within the U.S. health care system.

Bioterrorism Prevention

The budget marks the fifth year in row in which the Administration has proposed reducing key programs to keep America safe from deadly biological weapons. The budget includes cuts of $137 million to the public health preparedness program and of $62 million to the hospitals preparedness program.

FDA

Consumer groups, industry, and the FDA Science Board have called for increases in FDA’s budget so the agency can fulfill it obligation to protect America’s families.

Nominally the President’s budget calls for a $130 million increase in FDA funding. In real dollars the budget would result in a decrease of $72 million in FDA program funding. The President’s budget includes $106 million from user fees. The user fee increase includes $14 million for the review of prescription drug advertising that is not currently operating and $49 million from four currently unauthorized user fee programs: for human generic drugs, for animal generic drugs, for food facility reinspections, and for certifications to facilitate food exports. Moreover, increases in some program areas—such as defending against a terrorist attack on the food supply—come with decreases in other areas—such as other food safety programs.

CDC

The FY 2009 Budget request for the Centers for Disease Control and Prevention (CDC) and the Agency for Toxic Substances and Disease Registry (ATDSR) is $8.8 billion, a decrease of $412 million from FY 2008. This includes a $29 million reduction from CDC’s Chronic Disease Prevention and Health Promotion as well as Birth Defects, Disability and Health.

HRSA

The FY 2009 Budget requests $5.9 billion for the Health Resources and Services Administration (HRSA), a net decrease of $992 million from FY 2008. HRSA provides national leadership program resources and services needed to improve access to culturally competent, quality health care.

• Health Professions: FY 2009 budget request is $66 million, a net decrease of $557 million.

IHS

The FY 2009 Budget requests $4.3 billion for the Indian Health Service (IHS), a net decrease of $21 million. IHS provides health services for the growing population of American Indians and Alaska Natives to reduce health disparities.

AHRQ

The FY 2009 Budget request for the Agency for Health Care Quality and Research is $326 million, a $9 million decrease from FY 2008. AHRQ is charged with improving the quality, safety, efficiency, and effectiveness of health care for all Americans.

Program Terminations: For example, among the domestic discretionary programs that would be terminated are:

• The Commodity Supplemental Food Program, which provides nutritional food packages for less than $20 a month to more than 400,000 low-income elderly people, one-third of whom are over age 75;

• The Preventive Care Block Grant, which is operated by the Centers for Disease Control and Prevention and provides grants to states for preventive health services for underserved populations;

• The Community Services Block Grant, which provides funding for a range of social services and other types of assistance to low-income families and elderly and disabled individuals.

DISABILITY IN THE PRESIDENT’S BUDGET

President Bush’s Fiscal Year 2009 budget proposes deep cuts to key services and supports for individuals with disabilities.

HEALTH

The President’s budget proposal:

EDUCATION

The President’s budget proposal:

· Maintains the current level of funding for programs for Autism and other Developmental Disorders, providing a total of $108 million.

LABOR

The President’s budget proposal:

THE BUSH BUDGET SHOULD SUPPORT EFFECTIVE PUBLIC SAFETY PROGRAMS

The President’s proposal to cut funding for the Byrne/JAG and COPS programs significantly jeopardizes crime-fighting programs that have become cornerstones for building safer communities in America.

The President’s budget:

THE BUSH BUDGET SHOULD SUPPORT EFFECTIVE PUBLIC SAFETY PROGRAMS

The President’s proposal to cut funding for the Byrne/JAG and COPS programs jeopardizes crime-fighting programs that have become cornerstones for building safer communities in America. Despite the success of Byrne/JAG and COPS programs, Congress cut this year’s 2008 budget for Byrne/JAG aid to states and localities from $520 million to $170 million in response to the President’s veto threat. Now, the President wants to slash the funding even more. The President is also proposing even more significant cuts to the COPS program which have been progressive since his first budget proposal. He also would reduce much-needed for programs authorized by the Violence Against Women Act, as well as funding for juvenile justice programs. The President’s proposal to cut funding for these critical law enforcement grants significantly jeopardizes crime-fighting programs that have become cornerstones for building safer communities in America.

Local Law Enforcement: The President’s proposal to cut funding for the Byrne/JAG and COPS programs significantly jeopardizes crime-fighting programs that have become cornerstones for building safer communities in America. The President’s budget cuts the Byrne Justice Assistance Grant (Byrne/JAG) program, which is the only comprehensive federal crime-fighting program, enabling communities to target resources to their most pressing needs. While the “Byrne” program is proposed in the President’s 2009 budget by name, the proposed program is a completely different program because it eliminates most critical aspect of the Byrne grants which ensure that every state receives assistance for their law enforcement efforts (especially in rural areas or smaller sheriff’s offices).

Byrne/JAG programs provide funding to multi-jurisdictional drug task forces, as well as cold case units, identity theft investigations, school violence prevents, hate crime programs, services for threatened jurors, victims, and witnesses and other efforts. In response to Bush’s veto threat, Congress cut JAG aid to states and localities from $520 million to $170 million in FY08. This figure represents a 2/3 drop from Byrne/JAG’s actual appropriated levels in FY07. As a result of these drastic cuts to Byrne/JAG in FY008, various law enforcement agencies, as well as numerous police and sheriff’s offices are concerned that the cuts will have a devastating effect on law enforcement, forcing them to possibly close multi-jurisdictional task force programs.

In his fiscal 2009 budget request, President Bush once again proposed significant cuts to the Community Oriented Policing Services, or COPS program. As you know, COPS was created in 1994 as part of the Crime Bill to combat a national crime crisis by enabling policy officially to deploy new crime-fighting technologies, developing innovative policing methods, and hiring new officers. Despite the success now wants to cut funding even more. The President’s proposed budget also makes dramatic cuts in VAWA funding that will impact domestic agencies that assist victims of sexual assaults and domestic violence. The President’s budget also cuts funding for programs authorized by The Violence Against Women Act (VAWA) by $100 million – and would slash funding for juvenile justice programs in half.


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