Action Alert

March 14, 2006

NCIL Members Urged to Tell US Senators to Continue Funding Priorities in Fiscal Year 2007 Budget that Allow Americans with Disabilities to Live and Work in the Community

Another budget cycle is under way in the Senate, bringing with it another set of threats to funding for all the programs we care about. On Thursday, March 9, the Senate Budget Committee, chaired by Senator Judd Gregg (R-NH) approved a Fiscal Year 2007 (FY 07) budget resolution on a party-line vote of 11 AYEs to 10 NAYs. The full Senate will debate the budget resolution for approximately 50 hours, culminating in a series of votes, most likely on Thursday, March 16, 2006. There is both some good news and some bad news to report.

The Good News: We are pleased to report that the Senate Budget Resolution does not include Reconciliation Instructions, which would compel Congress to reduce spending in entitlement programs with mandatory spending such as Medicaid, Medicare, food stamps, TANF and SSI. This is an improvement both over last year's budget resolution and President Bush's Fiscal Year 2007 call for 35 billion dollars in additional cuts in Medicaid and Medicare spending.

The Bad News: This budget still reflects the misplaced priorities and is far from satisfactory in addressing domestic discretionary spending. We are disappointed to report that the Senate Budget Panel embraced an $873 billion cap on discretionary appropriations funding. Although the Budget Committee improved the President's budget by shifting $5 billion from defense spending to domestic discretionary spending, this funding level is still woefully inadequate to fund priorities for persons with disabilities such as Title VII, Part C funding for Centers for Independent Living, Section 8 Housing Choice Vouchers, the Section 811 Housing for Persons with Disabilities program, Community Development Block Grants, compliance with the Help America Vote Act, Assistive Technology, the Office of Disability Employment Policy (ODEP), Work Incentive Grants, making the WIA one-stop system accessible, etc. The result would be an erosion of funding for domestic discretionary spending across a wide range of categories ranging from housing to health care, transportation to education and beyond.

Sadly, this budget blueprint also includes more expensive, unnecessary tax cuts for the wealthy and assumes $14 billion in further entitlement program cuts. Even more cause for concern is raised by Gregg's inclusion of a controversial budget point of order against new mandatory spending proposals if government revenue other than Medicare taxes and fees subsidize over 45% of the program's cost.

NCIL's position: NCIL unequivocally opposes another budget that starves funding for priorities for persons with disabilities. We support substantial increases in the discretionary appropriations level (above the $873 billion currently in the budget resolution) to reflect crucial domestic funding needs. Furthermore, we oppose the continuation of unaffordable and unsustainable tax cuts for the affluent. If the Senate budget resolution is not amended to reflect these priorities, we would urge advocates to tell Senators from both parties to "just say NO" to a flawed budget blueprint!!!

NCIL enthusiastically supports the bipartisan Specter-Harkin amendment, which would boost discretionary spending by $7 billion, with the intention of making that funding available for health, education and training programs. It is vital that we get this increased funding so that enough resources are available to properly fund priorities such Title VII, Part C, ODEP, Work Incentive Grants, Assistive Technology and One-Stop Infrastructure.

>>Time Sensitive Action Step: Call Your Senators TODAY and Tell Them to "Support the Harkin-Specter amendment to increase health and education spending by $7 billion!"

What is the Status of the House Budget Resolution?

In case you were wondering, the House is not yet prepared to act on its FY 2007 budget resolution until after next week's recess. According to new House Majority Leader John Boehner (R-OH), the Budget Committee chaired by Jim Nussle(R-IA) is likely to wait until the week of March 27th to take up its budget vision. Apparently, members want more time to consider a package of "budget process" proposals to alter the rules under which budgets are considered. It is also very well known that there are major divisions in House GOP ranks between the far-right Republican Study Committee (RSC) and Republican Moderates. While the RSC is calling for further dramatic cuts in entitlement funding, the block granting of Medicaid and the elimination of the LIHEAP low-income heating fuel program, Republican moderates strenuously object to further cuts in funding for entitlement programs and are concerned that deep cuts in either entitlement or domestic discretionary programs in an election year may cost the GOP a number of races in the midterm Congressional elections this November.

ISSUES IN DEPTH: For more on the so-called "45 percent trigger" and why this approach to Medicare budgeting is so controversial and problematic, see the Center on Budget and Policy Priorities' report at http://www.cbpp.org/3-13-06health.htm

FOR MORE INFORMATION: If you have questions, or requests for additional information, contact Daniel Davis by e-mail at daniel@ncil.org or by phone at (202)-207-0334, ext# 1001.