Title: FW: News & Information Bulletin - Update on FY 2006 Budget Process]
  

April  29, 2005


 

News &  Information Bulletin


Update on FY 2006 Budget  Process

 The Fiscal Year 2006 Budget Resolution is a  recipe for disaster for people with disabilities and the final vote was  completely partisan��not one Democrat voted for it and 13 Republican House  members and three Republican Senators voted in opposition.   Unfortunately, the Budget Resolution narrowly passed the Senate  (52-47) and the House (214-211) last night.  This was a  truly tumultuous week � beginning with the appointment of House budget  conferees and a floor vote on the Democrats �Motion to Instruct� Budget  Resolution Conferees to agree with the Senate Budget Resolution on  Medicaid, and ending with late night negotiations and a final  vote.   

Tuesday�s Action on the Motion to Instruct

 On Tuesday, the House leadership quickly appointed  its Budget conferees (two Republicans and one Democrat).   When the floor debate began, House Democrats responded quickly by  introducing a �Motion to Instruct� calling for striking cuts to Medicaid  and asking for a bipartisan Commission to study Medicaid  reform.  While these motions are usually voted down when  introduced by a minority party, this motion surprisingly passed by a vote  of 348-72 � a true victory and symbolic disapproval of the Medicaid  cuts.  This vote, unfortunately, was only symbolic  because Medicaid cuts remained in the Budget Resolution.     

Thursday�s Budget Vote � Program Impact

 Under the Budget Resolution, the Senate and House  authorizing committees are instructed to reduce spending on mandatory  (entitlement) programs by $34.7 billion over the next five years, from  fiscal year 2006 � 2010.  Included is $10 billion in  proposed cuts to Medicaid, starting in FY 2007.  As for  other entitlement program, like SSI, TANF, Title XX Social Services,  Foster Care and Adoption Assistance and others, significant cuts are  possible as well.  Domestic discretionary cuts could be  $212 billion over five years.  This budget also makes  room for substantial tax cuts that primarily benefit wealthy  households.    Aside from the proposed cuts, budget  negotiators agreed to a Medicaid Commission (also referred to as a federal  advisory panel) that would study Medicaid and report to the Congress and  the Administration in September 2005 about reforming the  program.   This year will truly test Congress�s resolve  for limiting entitlement and domestic discretionary spending in light of  the increasing demand for public services.   

The  Budget Battle is Far From Over

 Throughout the remainder of the year, we  will see how attacks on disability programs play out.   The Senate and House will start the annual appropriations and the  reconciliation processes where the actual spending decisions are  made.  Disability advocates must now intensify their  outreach to Congress and urge them to reduce or eliminate most of the  proposed cuts.  The targets for our advocacy efforts  will be the following:   

Entitlement  Spending

 
  • House Energy & Commerce Committee  (jurisdiction over Medicaid) � the committee must adopt $14.7  billion in cuts.
  • House Ways & Means Committee  (jurisdiction over SSI, Medicare, etc.) � the committee must  adopt $1 billion in cuts.  
  • Senate Finance Committee (jurisdiction  over Medicaid, Medicare, SSI, and other important programs) � the  committee must adopt $10 billion in cuts.
Appropriations for Discretionary  Programs   For FY 2006, domestic discretionary programs  are slated for $23 billion in cuts - or almost 6% - as compared to FY 2005  funding levels when adjusted for inflation.  Slated to  be cut, eliminated or frozen are a number of human services discretionary  spending:   
  • HUD housing  
  • Special Education  
  • Vocational Rehabilitation  
  • Supported Employment  
  • Assistive Technology
These human services programs are targeted  for cuts to make room for large tax cuts that will primarily benefit only  the highest three percent of wage earners.   

Next  Steps

 No further details on the extent of the  program cuts is available since the final Budget Resolution is only a  blueprint and does not spell out how the Senate and House authorizing  committees must achieve the requested cuts.  Once the  committees begin working on the appropriations and reconciliation bills,  the bills must go through conference committee votes, floor votes and the  president�s signature before their enactment.   The Arc and UCP Disability Policy  Collaboration will work to ensure that the programs and service important  to people with disabilities and their family remain at the forefront of  this budget debate.  We also will provide our expertise  and influence at all levels in this process.   Thank you again for responding to our Action  Alerts and taking the time to contact your elected officials on our behalf  and on behalf of people with disabilities and their families.   Your advocacy efforts a truly appreciated and I am confident that  our voices are truly effective.   
    
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