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For Immediate Release: Friday , March 11, 2005

contact: Jennifer Fuson 202-339-9350 jfuson @communitychange.org

March Madness in the Senate:
Chairman’s Budget Increases the Deficit by $130 Billion

(Washington, DC) A little publicized point of order put forth by the Senate Budget Committee would prohibit the Senate from considering any legislation that would increase mandatory spending by $5 billion or more in any of the four 10-year periods from 2015 through 2055. The point of order would not prohibit consideration of future tax cuts.

The potential effect of this rule would be to ban any increases in future mandatory spending in programs such as welfare (TANF), food stamps, student loans, veteran’s disability compensation, and Medicaid – including efforts to increase coverage for the uninsured – should any of these proposals result in a net increase in spending greater than $5 billion over a ten year period. This leaves little room for inflation, population growth, economic hard times, or emergencies, and instead would require deep cuts in other programs to offset any proposed increases. This point of order can only be overcome with 60 votes – a super majority in the Senate.

“Do you have the wisdom to decide how legislators should spend government funds 50 years from now? Your Senators think they do. This point of order will tie the hands of lawmakers for decades to come,”said Deepak Bhargava, Executive Director, the Center for Community Change.

The Madness continues throughout the Chairman’s budget and low-income households are hit the hardest. Under the Chairman’s Mark entitlement programs (like Medicaid, food stamps, student loans) will be cut $32 billion by 2010, while the deficit will increase by $130 billion over the next five years.

These cuts to low-income programs include roughly:

• $6.6 billion to student loan programs
• $15 billion to Medicaid
• As much $2.8 billion to nutrition programs

All of these cuts are aimed at programs that help low-income people make ends meet. According to Census figures, 35.9 million people—12.5% of the population—live in poverty. The Chairman’s budget will only further hurt working poor families, while the wealthy get more than $70 billion in additional tax breaks.

“The federal budget reflects our priorities as a nation, yet the priorities in this budget – massive tax cuts for the rich, increasing the deficit by billions of dollars, all while cutting services and supports for working families across the country – are completely out of step with reality. The proposed Senate budget resolution, much like the President’s proposal, tries to balance the budget on the backs of ordinary families across the country,”added Bhargava.

Rachel Gragg, Senior Policy Analyst for the Center for Community Change, is available for comment on the budget 202-339-9332.

The Actions Speak Louder campaign, led by the Center for Community Change, is an effort to hold President Bush accountable for his budget decisions and the priorities they reflect. The campaign will raise awareness, spark grassroots action and start a dialogue with people in ‘red’ states as to whether the President’s budget reflects the moral values he espouses. To see what’s at stake, visit www.ActionsSpeakLouder.org

© 2005 The Center for Community Change

1000 Wisconsin Ave. NW, Washington, DC 20007
(202) 342-0519 | info@communitychange.org