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Government Relations Update

Federal Budget Resolution Cuts Programs Supported by NASW

On April 28, 2005 , Congress narrowly passed the FY2006 Budget Resolution cutting many key programs important to NASW and the social work profession. The budget totals $2.6 trillion. The House adopted the conference report (H Con Res 95, H Rept 109-62) by a vote of 214-211; the Senate voted 52-47 for adoption. This budget resolution will serve as a blueprint for further legislation that will be developed into more specific cuts in appropriations and reconciliation bills that will follow later this year.

In the House, all 195 Democrats, 1 Independent, and 15 Republicans voted against the conference report; all those voting in favor were Republicans. The fifteen House Republicans voting no were Bass (NH-2), Boehlert (NY-24), Castle (DE-AL), Goode (VA-5), Green (WI-8), Gutknecht (MN-1), Johnson (CT-5), Johnson (IL-15), Jones (NC-3), Leach (IA-2), LoBiondo (NJ-2), Ramstad (MN-3), Saxton (NJ-3), Shays (CT-4), and Simmons (CT-2). 

In the Senate, 43 Democrats, 1 Independent, and 3 Republicans voted against the conference report, while those who voted in favor were Republicans. The three Senate Republicans voting no were Chafee (RI), DeWine (OH), and Voinovich (OH).

NASW opposed a number of issues that remain in the final budget resolution; however, our advocacy was still very effective in deflecting even worse cuts as the House budget would have cut twice as much as the final resolution. In particular, the House had threatened at least $15 billion in cuts that would have had to come out of some of the most vital low-income programs - SSI, TANF, EITC, foster care and adoption, child support, or child care.  While cuts in those programs are still possible, in the budget just approved, no such cuts are required.  That is a very important victory.

Despite cuts to mandatory and discretionary domestic programs, the budget resolution would actually increase budget deficits by $168 billion over five years, due to increased tax cuts and defense spending. (Horney, J. CBPP, April 28, 2005 ).

Opportunities for Advocacy Will Continue

The budget resolution agreement includes instructions that direct the relevant committees of the

House and Senate to report so-called “reconciliation” legislation to achieve specified reductions in entitlement programs and taxes. House and Senate committees are to report legislation to achieve these entitlement cuts by September 16, 2005 (Horney, J. CBPP, April 28, 2005 ).

The budget calls on members to reduce the cost of mandatory (entitlement) programs for the first time since 1997, including $34.7 billion in cuts from mandatory programs over five years. This falls midway between the original House and Senate levels.

The Senate Finance Committee has been instructed to find $10 billion in cuts over five years. These will most likely come from Medicaid spending, but may come from other programs within the jurisdiction of the Committee. The House Energy and Commerce Committee must come up with close to $15 billion in cuts. Again, a top target is Medicaid, with additional cuts coming from other programs under its jurisdiction.

The education committees are charged with finding approximately $13 billion in cuts. Half are expected to come from pension-related savings, but the rest will likely be found in student loan programs, vocational rehabilitation, or child nutrition programs.

Agriculture committees will have to find $3 billion in cuts, and members will have to decide how much should come from farm programs as opposed to food stamps.

“The conference agreement assumes that funding for domestic discretionary programs (programs outside of the defense and international areas) will total $373 billion in 2006, representing a cut of $23 billion (5.9 percent) below the level enacted for 2005, adjusted for inflation…The cuts in discretionary programs would affect practically every area of the domestic budget. The budget agreement assumes, for example, that funding for education and training programs would be cut by $35 billion over five years, with a cut of 13.2 percent in 2010,” (Horney , J. CBPP, April 28, 2005).

You will be hearing from NASW over the next several months about actions needed on reconciliation legislation and discretionary spending through the appropriations process.

For a more detailed account of the budget resolution, read the Center on Budget and Policy Priorities' article: “ Assessing the Conference Agreement on the Budget Resolution,” by James Horney at http://www.cbpp.org/4-28-05bud.htm

 
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