Schumer Analysis: 2008 Bush Budget Gives New York Cold Shoulder

Schumer Analysis: 2008 Bush Budget Gives New York Cold Shoulder

U.S. Senator Charles E. Schumer today said that the Administration's budget proposal for fiscal year 2008 includes big cuts to a number of key programs relied on by New Yorkers. The Administration has slashed funding for Medicare by $75.8 billion and Medicaid by $25.7 billion, and cut money for the Urban Area Security Initiative, which provides more targeted funds to high threat areas, and the Low Income Home Energy Assistance Program (LIHEAP).

The Administration's budget acknowledges there is an annual gap of $290 billion between taxes received and taxes owed the government, yet another contribution to the growing federal deficit. Given an opportunity to step up to the plate and offer proposals to shrink this gap, the Administration instead offers ideas that would shrink the tax gap by only $29 billion over ten years - less than one percent each year.

"This budget doesn't pay enough attention to the middle class," Schumer said. "In his budget, President Bush has given New York the cold shoulder. The President hasn't learned from his mistakes - dramatic cuts to education, transportation, and health care show he still doesn't get it. The President's budget will effectively cut the core out of the Big Apple."

Listed below are some of the most significant cuts proposed in the Administration's budget, including New York programs.

$101.5 billion in cuts to Medicare and Medicaid: The Administration's budget cuts funding for Medicare by $75.8 billion and Medicaid by $25.7 billion. The lion's share of these cuts will come out of health care providers such as hospitals, nursing homes, and hospice. New York State's hospitals have been operating at a loss for the last eight years in a row, but are targeted for drastic reductions in payments.

State Children's Health Insurance Program (SCHIP):The President proposes $10 billion less than is needed merely to continue covering the children already enrolled in the Children's Health Insurance Program, which is called Child Health Plus in New York. He also proposes to scale back eligibility requirements to twice the federal poverty level. This would kick kids off of New York's program, which currently covers children up to 2.5 times the federal poverty level.

Eliminated Health Care Programs: The budget eliminated the Advanced Education Nurse Training program, which received $57 million last year, provides financial support to registered nurses who enroll in advanced training programs to serve as nurse practitioners, nurse educators, public health nurses, and other vital roles. The Community Services Block Grant, which provides education, employment, housing, and health care among other services, was also eliminated in the President's budget. New York received $54.4 million from this program last year. Also eliminated were the Emergency Medical Services for Children program, the Newborn Hearing Screening program, and Alzheimer demonstration grants.

Ryan White CARE Act: The Administration's budget barely increases funding levels overall for the Ryan White CARE Act programs, which provide vital assistance for those living with HIV/AIDS. The only program that receives any increase at all is the AIDS Drug Assistance Program (ADAP). ADAP receives a $25 million increase, but still falls short of authorization levels by $4.3 million. In addition, the Administration requests only $2.16 billion for funding for all Ryan White CARE programs, falling $48.7 million short of an already meager authorization level.

Child Support Enforcement: The Administration's budget cuts the federal share of state and local administrative costs and incentives by $452 million nationwide. Child support enforcement is one of the most effective and efficient programs in the federal government, and in 2004, for every federal dollar spent, families collected $4.38 in child support. The Administration's budget would decrease funding to New York State from and estimated $255 million in FY2007 to $228 million in FY2008, resulting in a $27 million decrease from FY07. These cuts will seriously undermine the dramatic progress that New York State has made in its Child Support Enforcement program. In the last twelve years, New York State improved its child support collection rate from 12% to 50%. With the proposed federal funding cuts, NYS' collection rates will likely drop.

Social Security: President Bush has again snuck a big Social Security privatization plan in his budget that, if enacted, would cost $637 billion over the next ten years and trillions more in the decades to come to create private personal accounts. The change would result in millions of middle-income workers receiving much smaller guaranteed Social Security benefits in retirement. In New York, there are currently about 2.1 million people receiving retirement benefits. Middle-income workers who retired 50 years from now would receive total annual benefit cuts of $7,229 under the President's private account plan, compared to what they would be entitled to under current law.

Homeland Security: The proposed budget cuts total funding for state and local homeland security programs by 25 percent, to $1.896 billion. The State Homeland Security Grant program (SHSGP) budget was slashed by 64 percent, down to only $187 million. While this drastic reduction in funds will greatly curtail homeland security efforts, there is one bright spot for New York and other high-risk states: the proposed budget would change the funding formula from a .75 minimum per state to a .25 minimum per state, meaning more funding is freed up to go to states that are most at risk. From 2003 to 2006, New York received $252 million in SHSGP funding.

Urban Area Security Initiative: provides more targeted funds to high threat, urban areas at greater risk of terrorist attacks. The Administration's proposed budget allocates only $600 million, down 22 percent from 2007.

Law Enforcement Terrorism Prevention Program: under the proposed budget, the LETPP program receives only $263 million. LETPP, which is targeted specifically at preventing terrorist attacks by providing law enforcement and public safety communities, working together with private partners, funds to support intelligence gathering and information sharing, hardening high value targets, building interoperable communications, and collaborating with non-law enforcement partners, other government agencies and the private sector. New York has received $67.37 million in LETPP funding from 2003 to 2006.

FEMA: The budget for disaster relief for the Federal Emergency Management Agency came in at $1.7 billion, In 2006, New York alone received $227 million in disaster relief funds after major flooding last summer. For the National Pre-Disaster Mitigation Fund, which helps communities prevent damage from floods and other disasters, the budget request is a mere $100,000.

Targeted Infrastructure Protection Program: Despite increased national focus last year on improving security at ports and transit facilities, the Administration is proposing a budget that keeps funding the same for ports and mass transit, while reducing money for trucking security. The budget request would provide only $210 million for port security, $175 million for mass transit and rail security and $9 million, down from $12 million for trucking security.

Local Law Enforcement: The Administration is proposing to cut the Community Oriented Policing System (COPS) program, from $541 million in 2007 to $34 million in the FY08 budget. This dramatic 93 percent reduction will undermine all COPS programs, which help law enforcement agencies hire police officers, enhance crime fighting technology, and support crime prevention initiatives, New York received $7.8 million in 2006. Funding for methamphetamine prevention and prosecution would be dropped from $63.5 million to $39.3 million - a 38% reduction. The Byrne Formula Grant Program, a partnership among federal, state, and local governments to create safer communities, would receive only $353 million.

FIRE Grants: The Administration is, once again, calling for significant cuts to the FIRE program: a 55 percent reduction, from $662 million to $300 million. FIRE grants provide funding for our city and volunteer fire departments and non-affiliated emergency medical services. These grants are aimed at helping communities enhance their first responder capabilities, including protecting the health and safety of the public and our nation's first responders. The funds go to specialized emergency response training, hiring additional firefighting personnel, the creation of wellness and fitness programs for firefighters, equipment acquisition and facility upgrades, and fire prevention and safety programs

Education: The Administration's budget proposal continues the Administration's practice of massively underfunding two vital education programs, No Child Left Behind (NCLB) and the Individuals with Disabilities Education Act (IDEA). In addition, the Administration's proposals eliminate 44 other important educational programs, including the Javits Gifted and Talented program, Education Technology State Grants, and the Even Start Program.

Individuals with Disabilities Education Act (IDEA): The Administration's FY08 budget falls short of congressional commitment, calling for level-funding of grants to states. Through the Administration's budget, the federal government would again provide a smaller share of states' total costs for special education. The Bush budget also falls further below the authorized levels in the IDEA Improvement Act of 2004. The proposed level of $10.49 billion falls $8.8 billion short of the FY08 authorized level of $19.3 billion. The Administration's proposed level-funding would only fund IDEA at 16.5 percent of the national average per-pupil expenditure for educating students with disabilities - still less than half of the 40 percent "full funding" promised by Congress when the law was enacted 30 years ago. Schumer estimates that New York's share of the program would be level-funded when compared to the likely FY07 level. This is $564 million short of the increase called for in the reauthorization of the law, and $766 million short of fulfilling Congress's "full funding" promise. Under the Administration's plan, New York City's funding would also be level-funded at approximately $243 million. This is $198 million short of levels set forth in the new law and $268 million short of 40% "full funding" levels.

NCLB/Title I: Title I Grants to local educational agencies are the largest component of the NCLB legislation and are designed to help raise student achievement in the most impoverished communities. Under the Administration's proposal, Schumer estimates that New York's share of the program would increase by $137.8 million over the estimated FY07 level - from $1.198 billion in FY07 to $1.336 billion in FY08. This increase falls far short of fully funding the No Child Left Behind Act. While No Child Left Behind stands to be reauthorized this year, the President's budget request shortchanges New York State by $1.119 billion compared to the level set in the law for FY07- and fails to each all students who are eligible for the program. Under the Administration's plan, New York City's funding would increase by only $89.6 million- from approximately $778.6 million in FY07 to $868.2 million in FY08 - $727.5 million less than what New York City is promised under the law. Under the Administration's plan, over 325,445 children in New York State will not receive promised Title I services.

After school Programs: The Bush budget leaves behind 1.9 million students who would receive after school services if the 21st Century Community Learning Centers program were funded at the level promised in NCLB. 21st Century funding would decrease from $10 million from estimated FY07 levels, to $981 million. While the 21st Century Community Learning Centers program is up for reauthorization as part of No Child Left Behind Act this year, the President's FY08 funding level falls $1.5 billion below the $2.5 billion authorized level for FY07. NY State would receive only $90.87 million--$138 million below the authorized level of $229 million. Because of the proposed decrease in funding, 182,491 New York students will be denied promised after school services.

Americorps and Job Corps The President's budget cuts Americorps funding by $9.2 million, which will be a direct hit of $1.04 million to New York's Americorps-funded programs that provide volunteer services in local communities such as tutoring and mentoring, building affordable housing, and managing after-school programs. Job Corps, a highly successful program that helps young people from age 16-24 to turn their lives around and find a career path, was cut by $55 million. There are seven Job Corps programs in New York State.

Head Start Head Start, a national program that readies young children to enter the public school system, was cut by $100 million in the President's budget. This will mean a loss of approximately $6.3 million to New York State Head Start programs.

Terminated programs: The Bush budget eliminates 44 Education programs, for a total of $2.25 billion. They include Educational Technology State grants ($272 million), State Grants for Innovative Programs ($99 million), Javits Gifted and Talented Program ($9.6 million), Even Start ($99 million), and Tech Prep Education State grants ($104.8 million).

New York receives millions in funding from many of the programs every year which would be terminated in FY2008 under the budget proposal. In addition, New York will receive $2.4 million for Byrd Honor Scholarships in FY2006 (the last year for which grant data is available), $59.5 million in Vocational Education State Grants and $5.3 million in Tech-Prep Education State Grants-- all of which would be terminated for FY2008. (The complete list of programs slated for termination is at the end.)

AMTRAK: The Administration is continuing to rip the rails out from under Amtrak, providing only $800 million in federal subsidies for Amtrak, down 38 percent from $1.3 billion last year. Transportation experts say $900 million is the minimum funding necessary to keep Amtrak's trains running. More than 10 million New Yorkers ride Amtrak trains each year, and ridership is growing.

The Administration is only requesting $500 million for capital improvements and $300 million in operating assistance for Amtrak. Airport Improvement Program: The Airport Improvement Program, which provides grants for local airports to improve facilities was cut 21 percent in the proposed budget, to $2.75 billion, down from $3.515 billion last year.

CDBG: After being saved by Democrats in Congress two years in a row, the Community Development Block Grant Program (CDBG) is once again on the President's chopping block. The CDBG program is a signature program for New York's cities, counties and local communities to create jobs, spur economic development and small business opportunities and expand homeownership. New York's CDBG funding is being reduced by $104 million, to only $249 million. New York City's portion would be reduced by $55.9 million.

Community Development Financial Institutions (CDFI): The Administration has requested $29 million for the CDFI Fund in the FY08 budget. While this is $20.7 million above the FY 2007 request of $7.9 million for administration only, the CDFI Fund has dropped precipitously since FY 2001 when the agency was funded at $118 million. In the joint funding resolution recently approved by the House for FY 2007, the CDFI Fund received less than half this amount. This request is significantly lower than the amount needed for the Fund to provide equity investments, grants, loans, and technical assistance to new and existing community development banks and credit unions, community development loan and venture capital funds and micro-enterprise loan funds. In the last 11 years, the CDFI Fund has invested $123.2. million in New York banks and CDFIs. In 2005, New York received more than $7.15 million.

Supportive Housing for Persons with Disabilities (Section 811): The Administration has proposed to cut the Housing for Person with Disabilities by over 50%. In FY08, the program would only receive $125 million, reduced significantly from last year's appropriation of $239 million. Nationally, the Disabled Housing program is responsible for developing approximately 1,400 new units of rental housing and funds approximately 1,600 five-year tenant based rental assistance vouchers for persons with disabilities each year. New York State public housing authorities (PHAs) and non-profit organizations operate 1,200 programs. Under the new proposal, New York organizations are expected to receive at most - half of their FY07 allocation - it is unclear if that amount will be enough to renew all existing rental assistance vouchers. But it is certain that under the new proposal, organizations would not be able to develop any new units of rental.

HOPE VI: The Administration has once again proposed to terminate the HOPE VI program that rehabilitates and restores severely distressed public housing projects. In addition, they have requested to rescind $99 million - the entire FY07 funding allocation. For the past 5 years the Administration has proposed to eliminate HOPE VI. In the FY07 funding resolution, Congress funded the program at a $100 million level making available roughly 5 grants for the entire United States. Currently, New York has 16 HOPE VI projects - all of which could possibly be in jeopardy of getting their funding rescinded. Niagara Falls Public Housing Authority received a HOPE VI grant in a competitive grant process late last year.

Section 202: The Administration has proposed slashing Section 202 grants for housing funding for the elderly by almost 25% from the FY07 funding resolution levels. In FY05 Section 202 was funded by over $1 billion, in FY06 and FY 07 Section 202 was funded at $742 million, and now the Administration is proposing an additional cut of almost $200 million dollars to the already under funded program. Section 202 funds are used to house the elderly in supportive housing with services and support from service coordinators. If enacted, these proposed budgetary cuts would leave many New York Seniors without the adequate services they need.

Housing Opportunities for Persons With AIDS (HOPWA): The Administration proposes a modest funding increase to $300 million however they don't go far enough. The National AIDS Housing Coalition (NAHC) estimates that a bare minimum of $454 million is needed in FY08 to maintain existing programs, provide funding for two additional jurisdictions that became eligible for HOPWA in FY07 and expand access to HIV/AIDS patients stuck on waiting lists for housing and services. HOPWA funds are used to provide safe, secure housing for people living with HIV/AIDS. Several studies have demonstrated the importance of stable housing in effective treatment of HIV/AIDS and shown that HIV/AIDS patients with stable housing are less likely to engage in behaviors associated with the spread of the disease. New York is the largest recipient of HOPWA funding and will receive approximately $3 million in additional funding from this increase, but would receive an additional $36 million if the program were funded at the recommended level. Public Housing Capital Fund: The Administration has proposed cutting funding for the Public Housing Capital Fund by over $150 million. This cut follows cuts of $252 million in FY06 and $140 million in FY 07. If this cut is enacted, New York State's Housing authorities will lose over $70 million in funding from the Capital Fund this year, New York City alone would lose $57.2 million. These cuts demonstrate the Administration's continuing effort to reduce the resources available to the nation's public housing stock. The Public Housing Capital Fund is designed to respond to the capital and management improvement requirements of public housing. The New York Housing Authorities have specifically used capital funds to modernize the physical stock of their public housing developments, which includes providing new roofs, new windows, new heating and cooling units and new security systems for their many buildings.

Rural Rental Housing: The Administration has again proposed zero funding for the Section 515 Rural Rental Housing program. Congress has rescued this program and funded it at $100 million for the past 3 years. The Section 515 is multipurpose, providing funding for rehabilitation of existing projects and construction of new affordable rural rental housing. New York has one of the largest stocks of Section 515 in the country with over 13,000 units spread over 429 different housing projects. However, New York's housing projects are some of the oldest in the nation and are in need of the rehabilitation funding provided by Section 515. New York is one of the largest overall recipients of Section 515 funding, with over $17 million received since 2000. Funding for rehabilitation of New York's existing housing stock as well as construction of additional units would be lost under the Administration's plan.

USDA Rural Single Family Direct Homeownership Loans: The Administration has proposed eliminating the Section 502 direct homeownership loan, a funding cut of over $1 billion. These loans are one of the most effective government loan programs, providing an affordable single-family home at a cost to the government of only $10,000 per unit. New York received 253 loans totaling over $22 million in FY06. Additionally, there is a backlog of over 300 applications from New York families seeking housing assistance. Under the Administration's plan, these families won't receive this assistance and will be forced into higher-cost homes they can not afford.

Rural Housing and Economic Development (RHED) Grants: The Administration has again eliminated the RHED program in its budget request. These grants are used to develop affordable housing in rural areas, through direct funding for housing and for support services through local non-profits. Since the program's inception, New York has received 7 grants, totaling over $1.1 million dollars.

Veterans Health Care: While returning veterans from the wars in Iraq and Afghanistan, more than 155,000 so far, are increasing demand for VA services, the Administration's budge continues to underfund the VA, providing only $36.8 billion for veterans' health care in the proposed 2008 budget. More than 1.1 million veterans in New York rely on VA health services, and troops returning from Iraq and Afghanistan are expected to draw even more heavily on medical and psychological health care services.

Manufacturing Extension Partnership Program: The proposed budget funds the Manufacturing Extension Partnership Program at only $46.3 million, down from $104.6 million last year. The MEP program has helped over 1,400 manufacturing companies in upstate New York stay afloat by providing consulting and training services for small to medium size manufacturing companies.

Trade Adjustment Assistance: The Administration's budget proposal would cut funding for the Trade Adjustment Assistance (TAA). TAA provides aid to workers who lose their jobs or whose hours of work and wages are reduced as a result of increased imports. Under the proposed budget, $50 million less would be available to assist these workers. Developed in response to expanding globalization, TAA provides training for employment in another job or career; weekly cash payments called trade readjustment allowances (TRA) as well as job search and relocation allowances.

Clean Water: The Clean Water state revolving fund received only $687.5 million, a 22 percent decrease from 2006. New York's portion would be reduced to $75.6 million

Workforce Investment Act/Training and Employment Services Funding: The Administration's proposed budget slashes funding for workforce training by 500 million, down to $4.6 billion.

LIHEAP: Despite energy prices that have remained historically high, and have driven an increasing number of people to seek help paying their heating bills, funding for the Low Income Home Energy Assistance Program (LIHEAP) was cut to 1.8 billion, down 10 percent from 2007. For New York, where more than more than 840,000 households received LIHEAP funding in 2006, funding was cut to $187 million, a 22% percent reduction.

Buffalo Courthouse: One spot of good news for New York: the Buffalo Courthouse received $46.7 million under the Administration's proposed budget.

http://schumer.senate.gov/SchumerWebsite/pressroom/record.cfm?id=268524&&year=2007&