REP. MALONEY REACTS TO PRESIDENT'S BUDGET : BAD FOR NEW YORK, AND THE MOST FISCALLY DAMAGING BUDGET IN U.S. HISTORY

Feb 4, 2003
Press Release

Washington, DC - Today, in reaction to President Bush's FY04 Budget, Congresswoman Maloney released the following statement:

"This is the most fiscally irresponsible budget ever submitted, and without a doubt, New Yorkers will feel the effects on their local communities. The budget should reflect our nation's priorities and values - good jobs, safe communities, quality education, and access to health care, and this budget fails to fund those priorities and values," said Congresswoman Maloney in a statement today.

How the Bush Budget Hurts New York:

Medicare and Medicaid - taking a toll on New York's Hospitals:

:

The President's budget does not increase Medicare payments for inpatient hospital services under the Medicare Program. Instead, the President threatens to find "savings" from other Medicare providers like hospitals to support his Medicare reform. If he follows the recommendations of the Medicare Payment Advisory Commission as he insinuated, New York hospitals, nursing homes and home care facilities could lose approximately $380 million over five years (source: HANYS).

According to the American Hospital Association, more than half of our nation's hospitals are losing money treating Medicare patients, a figure expected to grow to 65 percent by 2005. With a growing and aging seniors population, hospitals clearly need additional support, not additional cutbacks.

The President's budget also eliminates the current Medicaid Disproportionate Share Hospital (DISH) program that helps hospitals serve the neediest of our community.

Low-Income Housing - leaving New York's neediest behind:

:

The budget suggests an increase in HUD's Housing Opportunities for People With Aids (HOPWA) funding increase $5 million to $297 million. But this is less than a 2% increase.

The Budget zeros out funding for HOPE VI housing. Republicans say it was only meant to be a 10 year program and the decade is up. However, the program's purpose is to revitalize severely distressed public housing developments and transform them into safe, liveable environments.

The budget converts Section 8 tenant-based housing assistance to a block grant - The budget converts Section 8 housing vouchers for low-income renters into a block grant program administered by states. Project-based vouchers continue to be administered by the Department of Housing and Urban Development. The budget's funding for these two programs and related activities in 2004 is $17.1 billion. Combined with a recapture of $1.1 billion in unobligated balances, total funding in 2004 is comparable to the amount necessary to maintain purchasing power at the 2002 level. However, the block grant proposal has implications for funding levels in future years.

Community Oriented Policing Services (COPS) - cuts mean fewer police protecting New Yorkers:

President Bush has proposed eliminating the entire hiring component of the COPS program - a cut of $330 million. Since its creation in 1994, COPS has provided funding to hire over 110,000 police officers in more than 11,000 communities. In addition, COPS funding also advances community policing, enhances crime-fighting technology, funds training and supports crime prevention initiatives. In New York City alone, COPS has provided $587 million to hire more than 7,000 police officers. Based on historic funding levels for New York City (7.5% of grants awarded), the city will likely receive a cut of $24.8 million in COPS funding this year as a result of the Bush budget, enough funding to hire 330 new officers. New York would lose an estimated $24.8 million annually, which would cover the costs of 330 new officers.

Title I receives less than was promised by the Bush Administration - leaving New York's Children behind :

- :

Under Bush's Budget, New York City will receive $376 million less than they were promised in Title I, Improving Academic Achievement for Disadvantaged Children, in funding by the No Child Left Behind Act.

The budget also cuts several important education programs including education technology, improving teacher quality, and the Perkins loan program. The budget freezes the maximum Pell grant award at $4,000. This is the second straight year that the President has proposed no increase in the award.

In addition, The Bush Budget hurts the Environment:

:

The Bush budget authorizes oil and gas exploration and, if discovered, development of a small portion of the Arctic National Wildlife Refuge. The administration should focus its efforts on increasing conservation and finding alternative sources of energy such as solar and wind power.

For 2004, the President's budget significantly cuts funding for programs that protect public health and the environment. The budget provides $28.0 billion in appropriations for these programs, which is $2.7 billion (8.8 percent) below the level needed to maintain purchasing power at the 2002 level. The President's budget continues to cut the purchasing of these programs in the following four years. Over five years (2004-2008), the budget's funding for appropriated programs is $16.5 billion (10.2 percent) below the level required to maintain purchasing power at the 2002 level.

And will also hurt women at home and around the world:The Administration freezes Title X family planning programs at the 2002 enacted level of $265 million. This funding is a cut of $9 million (3.4%) from the level needed to maintain purchasing power at the 2002 level. At a time when our country is facing a disastrous economy, this President is attacking the poor once again. Last year, Title X-funded clinics served 4.4 million women at more than 4500 clinics nationwide; two-thirds of these women had incomes under the federal poverty level. Title X clinics provide STD screening and treatment, gynecological exams, HIV screening, breast and cervical cancer screening, and much more. By keeping this funding stagnant, the Administration is threatening the health of millions of poor women across the country. For every dollar the federal government invests in Title X, three dollars are saved in Medicaid costs for prenatal care and delivery. Imagine the money we could save later, if we just invest now. The data show that public funding of family planning services prevents poor birth outcomes and improves women's overall health. By cutting this funding, we are turning our backs of millions of women and their children.

:
The Administration freezes Title X family planning programs at the 2002 enacted level of $265 million. This funding is a cut of $9 million (3.4%) from the level needed to maintain purchasing power at the 2002 level. At a time when our country is facing a disastrous economy, this President is attacking the poor once again. Last year, Title X-funded clinics served 4.4 million women at more than 4500 clinics nationwide two-thirds of these women had incomes under the federal poverty level. Title X clinics provide STD screening and treatment, gynecological exams, HIV screening, breast and cervical cancer screening, and much more. By keeping this funding stagnant, the Administration is threatening the health of millions of poor women across the country. For every dollar the federal government invests in Title X, three dollars are saved in Medicaid costs for prenatal care and delivery. Imagine the money we could save later, if we just invest now. The data show that public funding of family planning services prevents poor birth outcomes and improves women's overall health. By cutting this funding, we are turning our backs of millions of women and their children.

The United Nations Population Fund (UNFPA), which assists developing countries, at their request, to address reproductive health and population issues,

is not funded. What appears to be money for UNFPA, is identified as "Reserved - To Be Allocated" at $25 million. The Administration continues to put the lives of women and children, both here and abroad, at risk.

###