Federal Budget

Ethical Reflection
* Government is the protector of the general welfare, particularly of the most vulnerable
* Budgets reflect values.

Background
The President’s budget proposal seeks to
* make tax cuts permanent
- will cost $1 trillion over 10 years
- federal spending over $500 billion more a year than what raised in taxes
- will further increases deficit

* lock in a funding cap for discretionary programs through 2009, which will
- tie hands of future policy makers
- require Congress to make extreme cuts in critical domestic programs

* reinstate pay-as-you-go entitlement spending
- to increase spending on one entitlement program would have to cut another

* programs affected: (by 2009)
- Education for the Disadvantaged
- Title I funding $660 million down from 2004
- elementary/secondary education, job training and other social programs cut by $6.2 billion

- Environment
- Clean Water Act State Revolving Fund down 37% by 2005
- environmental protection and natural resources management cut 20% or $6.8 billion

- Health
- discretionary health programs cuts of $5.6 billion will affect
- National Institutes of Health
- Centers for Disease Control and Prevention
- Food & Drug Administration
- community health centers

- Head Start and WIC
- Head Start funding would result in an estimated 62,000 children turned away
- Supplemental Nutrition Program for Women, Infants and Children cuts mean 450,000 fewer served

- Veterans Health Benefits would fall $5.7 billion below the 2004 level

- The Housing voucher Program would cut 30% of all assisted families


What Will Help

Remembering the poor and neediest in the land when considering budget decisions

Not making decisions that tie the hands of future policy makers

Taking steps to control the budget deficit.

3/2004