In order to pay for its exorbitant spending on military matters and to cover up for massive past and future tax cuts, the White House set forth a bold agenda of weakening or gutting services on which poor people depend.
When the Bush administration pushed through massive tax
cuts and military funding, some budget analysts and advocates for
the poor predicted the backlash would include large revenue cuts
that would diminish programs serving the most vulnerable people in
the US. With the release of Bush’s proposed 2006 budget yesterday,
those fears have been realized. The president’s request includes $20
billion in budget cuts to over 150 programs, many of them targeted
toward low-income people.
"The new budget proposals continue the Republican strategy of
emasculating the parts of government that serve ordinary Americans
in order to build the military, subsidize corporations, and slash
taxes on the affluent," said Frances Fox Piven, professor of
Political Science and Sociology at the City University of New York,
in a press statement issued yesterday. "With deficits rising and the
dollar weakening, the policy threatens not only the well-being of
millions of Americans, but the stability of the American
economy."
The president’s $2.5 trillion budget proposal increases military
and national security spending, which in turn benefits defense and
other contractors and their investors. It also includes additional
tax cuts.
But, in an attempt to control spiraling deficits that have
characterized his administration’s fiscal policy, the president
proposes eliminating or weakening other projects and services.
Among the programs lined up for the chopping block are: Medicaid,
the Centers for Disease Control, Amtrak, Even Start, farm subsidies,
and housing programs for Native Americans, people with AIDS, and the
disabled. Many programs that are not slated to be cut will see their
funding stagnate or lag behind inflation at a time when many
essential government efforts are already experiencing funding
shortfalls.
For its part, the Bush administration did not hide the fact that
so many programs were to be terminated or cut deeply. At a press
event yesterday, Bush called his budget "lean" and said: "People on
both sides of the aisle have called upon the administration to
submit a budget that helps meet our obligations of -- our goal of
reducing the deficit in half over a five-year period, and this
budget does just that. Discretionary spending is -- will increase at
a rate less than inflation."
Instead of discussing the potential impact of the cuts,
administration spokespeople and documents touted the
administration’s commitment to defending the homeland, transforming
the military, and promoting "pro-growth policies that have helped
produce millions of new jobs and restore confidence in [the US]
economy."
The budget proposal includes a 5 percent increase in military
spending, not counting money for the ongoing wars in Afghanistan and
Iraq.
"This budget’s priorities are clear," wrote the Center for Budget
and Policy Priorities (CBPP) in an analysis of the president’s
proposal. "The budget features cuts in scores of programs that
middle- and low-income families rely on, alongside large additional
tax cuts for those at the top of the income spectrum who have
benefited the most from the tax cuts already enacted."
While Bush boasted that his proposed budget would cut the federal
deficit in half over the next five years, budget analysts for CBPP
pointed out that the president’s blueprint did not take into account
future spending on Iraq and Afghanistan or his proposal to make his
tax cuts permanent.
William Gale, a budget analyst with the centrist Brookings
Institution, agreed. In a recent seminar on the Bush agenda, he
compared the president’s claim to "saying you're going to go on a
diet until dinner."
According to CBPP and Brookings, the administration’s deficit
projects are designed to appear to decrease over the next five years
and then skyrocket shortly thereafter.
Advocacy organizations from small farmers’ groups to housing
coalitions railed on the administration for slashing funding and
blamed the administration for looting federal coffers in the name of
tax cuts for the wealthy.
One of the hard-hit programs is Medicaid, slated to sustain cuts
of $45 billion over the next ten years. Heather Boushey, an
economist at the progressive Center for Economic and Policy Research
(CEPR), says Medicaid and other programs, like childcare assistance,
which is also being reduced, are crucial for low-income families
struggling to keep their jobs.
"Access to health insurance and affordable, quality childcare
makes the difference between mothers being able to stay on the job
and not," said Boushey in a press statement put out by CEPR.
"Unfortunately, the President's budget does not recognize the
importance of these supports for helping working families."
Small farmers will feel the crunch as well, as the Bush proposal
includes reducing the caps on subsidy payments to farmers by
$90,000. The Institute for Agriculture and Trade Policy (IATP), an
advocate for family farms and rural communities, said the current
subsidy system needs to be changed but called the administration’s
plan "small-minded thinking that misunderstands farm programs."
IATP advocates policies that control production in order to keep
market prices high enough to sustain farmers and says that the 1996
Freedom to Farm Bill stripped measures that had previously prevented
massive overproduction, leading to falling prices and the need for
government payment programs.
"Capping subsidy payments will do nothing to address the
underlying cause of the current farm crisis, which is massive
overproduction and low farmgate prices," IATP President Mark Ritchie
said in a press statement. "Subsidy cap or no subsidy cap, farmers
will over-produce, prices will continue to be low, and rural
communities will continue to pay the price."
Education advocates, while acknowledging the budget’s proposed
increases for Pell Grants, special education and funding for No
Child Left Behind, criticized the president for completely
eliminating 48 programs, including Even Start - a program that
targets low-income children and parents who have reading trouble -
and funding for vocational programs - which are designed to provide
students with job skills right out of high school. The Bush
administration called those programs "wasteful" and "redundant" and
claimed that they had failed to produce measurable results.
The Department of Housing and Urban Development will see its
budget reduced by 11 percent under Bush’s proposal. Some of the
programs slated for decreased funds include: Native American Housing
Block Grants, Housing Opportunities for Persons with AIDS, Housing
for Persons with Disabilities, and Lead Hazard Reduction.
Meanwhile, programs to promote home ownership would receive
budget increases, in keeping with the administration’s "ownership
society" theme.
"A cut of this magnitude will force communities to close youth
centers, curtail neighborhood revitalization programs, help fewer
elderly homeowners stay in their homes, leave poor neighborhoods
without water and sewer services, and reduce or eliminate a host of
other activities," Sheila Crowley, president of the National Low
Income Housing Coalition, told Reuters.
Though the president’s budget proposes severe cuts, Congress has
great control over the final outcome, and many of the programs
slated for elimination and cuts will likely be reinserted into the
final version.