Action Alert

January 17, 2006

One Percent Across-the-Board-Cuts passed at end of 2006 Appropriations Cycle Title VII, Part C and most other domestic discretionary funding to be impacted

Legislative activity at the end of last year was incredibly intense and difficult to follow. Relatively little attention was given to Congressional passage of the Department of Defense Appropriations Bill. And even less publicity was given to the inclusion of a 1% across-the-board cut in domestic discretionary spending in the Defense Appropriations Bill. The only exemption provided was that on spending on programs serving veterans.

NCIL is very disappointed by these cuts hitting programs and services promoting the independence of persons with disabilities. We believe that it was inappropriate for Congress to attach such far-reaching funding measures to legislation that is considered “must-pass.” Across the board cuts are especially inappropriate given soaring heating costs and sky-high housing costs in many parts of the nation. Some examples that offer a sense of the impact of these cuts on your center and your community are listed below.

What does this mean for your Center and your Community?

Loss of some funding for CILs and SILCs

Title VII, Part C, which was funded at the level of $ 75.39 million in fiscal year 2005, will be funded in FY 2006 at $74,636,100. This amounts to a loss of $753,900 in funding.

Title VII, Part B, which was funded at roughly $25.4 million in fiscal year 2005 will lose roughly a quarter of a million dollars in funding

Less funding for key discretionary safety net programs serving people with disabilities

Section 8 Housing Choice Vouchers: According to the Center on Budget and Policy Priorities (CBPP) “The one percent across-the-board cut below the specified funding level leaves funding for renewal of Section 8 Housing Choice Vouchers — the government’s main rental assistance program for low-income families — well below the funding needed to restore cuts made in 2005. … Approximately 65,000 fewer low-income households would receive rental assistance in 2006 as a result of this cut, if the resulting funding shortfalls in the program are addressed by reducing the number of households the program assists”

LIHEAP: Despite soaring home heating costs due to protracted tensions in the Middle-East, Congress did not even exempt low income home heating from the across the board cuts. Of the households receiving LIHEAP assistance in FY 2002, about 50% included at least one disabled member. In our view, not exempting LIHEAP from these cuts is both false economy and at the same time an apt illustration of misplaced priorities Congress asks the least fortunate to sacrifice while not even asking the same of the wealthy!

Grant programs that CILs turn to for funding will have less funding to offer

Community Development Block Grants (CDBG): According to CBPP, with the additional one percent cut, CDBG funding was cut $777 million (15.7%) below the 2005 level adjusted for inflation. CDBG is often used to fund home accessibility modifications, municipal compliance with Title II ofthe ADA, accessible and affordable housing registries and other programs that help meet the needs of persons with disabilities.

Office of Disability Employment Policy (ODEP) – Congress and the Bush Administration had already approved a $19.3 million funding cut – or 41% funding reduction – for ODEP, which has been a substantial source of grants around youth transition and employment issues. ODEP, which was funded at $27.9 million in the 2006 Labor-HHS-Education Appropriations bill was not exempted from the across the board cut, meaning that it loses over another quarter of a million dollars.

Fair Housing Initiatives Program (FHIP) – By comparison, funding for the Fair Housing Initiatives  (FHIP) program emerged relatively unscathed. HUD had proposed to cut FHIP funding by four million. But thanks to a bipartisan vote in favor of an amendment offered in the House by Rep. Al Green (D-TX), these cuts were rejected. FHIP funds testing and other fair housing enforcement and education activities. In recent years, many CILs have been FHIP grantees. The one percent cut still applies, but $200,000 less is negligible when compared with the reductions proposed by the administration last year.

Assistive Technology: Assistive Technology was increased by about $1 million to $30,760,000. Even with the 1% cut (over $300,000), AT fares better than most programs.

For more on the impact of the across the board cuts, including some state by state breakdowns see http://www.cbpp.org/12-8-05bud2.htm.

FUTURE ACTION STEPS:

Call, write, or meet with your Representative and Senators’ offices to note the impact of these cuts on your CIL or SILC’s ability to meet the needs of persons with disabilities in your community or state and to discuss the human impacts of reductions in funding of safety net programs.

Tell them that it is far past time for Congress asks the affluent to sacrifice rather than repeatedly cutting funding for safety net programs and programs that help persons with disabilities to live independently in their communities. Report back the results of these meeting to Daniel Davis at Daniel@ncil.org.