Establishing the Budget for the Federal Government

ESTABLISHING THE BUDGET FOR THE FEDERAL GOVERNMENT (Extensions of Remarks - March 11, 2004)

HON. MAXINE WATERS OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
THURSDAY, MARCH 11, 2004

Ms. WATERS. Mr. Speaker, I would like to thank the CBC Chairman for organizing this Special Order and providing us with this opportunity to speak about one of the most important duties Congress has-establishing the budget for the Federal government.

It is often said that a budget is an indication of the President's priorities. As this budget certainly is a true reflection of the President's priorities, it's painfully obvious that working men and women have much to be concerned about. This budget cuts funding for dozens of important programs, leads us deeper into debt and does nothing to help stimulate the economy.

Since the President took office in 2001, 3 million private sector jobs and 2.8 million manufacturing jobs have been lost. The unemployment rate is 5.6 percent, though this figure is inaccurate because it fails to take into account the hundreds of thousands of workers that have given up looking for jobs and the many workers who have had to "trade down" in salary and benefits in order to become re-employed. If we were to include these men and women, the unemployment rate would be 7.4 percent. Tragically, the unemployment figures for minorities are far worse-almost 10 percent of African-Americans are unemployed.

We should not be proud of these figures. We should be ashamed of them. We certainly should not be praising an economic plan that has failed our workers, as the President, and all too many of my Republican colleagues continue to do each day.

Unfortunately, the President's fiscal year 2005 budget is a continuation of his failed economic policy. Each year the President promises economic recovery and significant job growth, and every year, the American people are disappointed. The so-called economic recovery that President Bush is touting is a jobless recovery and Mr. Speaker, a jobless recovery is no recovery at all.

Mr. Speaker, let me remind you of the promises that this Administration has made regarding job growth. In 2001, the President's Council of Economic Advisors promised 800,000 new jobs by the end of 2002 if Congress passed his $1.3 trillion tax cut which largely benefited the wealthiest of Americans. Instead of creating these jobs, 2.2 million workers lost their jobs in 2002.

In 2002, the President's Economic Advisors promised 300,000 new jobs if Congress passed the President's economic stimulus plan. Congress did, and thousands more workers lost their jobs.

In 2003, the Council predicted 900,000 new jobs if Congress passed the President's budget and subsequent tax cuts. Congress did but the results were the same as in previous years-thousands more workers without jobs.

This year, we continue to hear the same rhetoric from the President--'pass my budget and watch the economy grow.' The President seems to suggest that recovery is just around the corner. However, that 'corner' has proven to be elusive for the past 3 years, and there is no reason to believe that this budget will be any different. In fact, there is ample reason to believe that this year will be far worse.

Mr. Speaker, not only will this budget do nothing to help stimulate the economy, it fails to provide funding for educational, job training and other programs that our workers rely upon to become effective workers.
For example, the President's budget cuts funding for dozens of education programs including reading and vocational programs. It also eliminates another 38 education programs including community technology centers, dropout prevention programs, and literacy programs for prisoners.

The budget even underfunds the President's signature program, No Child Left Behind, by $9.4 billion. By underfunding this program, 2.4 million children will not receive the help with reading and math they were promised when the President signed this bill into law.

Furthermore, this budget places additional burdens on men and women who are trying to get off welfare and into decent paying jobs.

Mr. Speaker, as you know, during reauthorization of our Nation's welfare programs, Congress implemented new requirements that required welfare recipients to work additional hours in order to receive benefits. Yet, we did not provide any additional funding for childcare. As a result, parents receiving TANF benefits often are left with the impossible choice of leaving their child home alone or skipping a day at work.

Unfortunately, this budget continues this devastating policy. It freezes funding for childcare at 2004 levels and flat funds it through 2009. As a result, the number of children that receive childcare assistance will decline by 300,000 over the next four years. In addition, the budget only provides half of the funding promised for after-school programs, meaning that 1.3 million children who were promised after-school services will not get them.

Mr. Speaker, the fiscal year 2005 budget is nothing more than a continuation of failed policies. It explodes the deficit, particularly in the fiscal years that the Bush Administration fails to describe in its budget documents. It fails to meet our people's need for healthcare, education, job training, housing, homeland security and many other critical programs. All these priorities are being sacrificed to pay for outrageous tax cuts for millionaires, those who need it least. I urge my colleagues to reject the President's budget and support a budget that will serve the poor and the middle class and provide meaningful assistance to the American people.

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