March 15, 2008

Revenue Projections Get Worse -  What differentiates health and human services - Take Action to Protect critical services!

The Governor and Legislative leadership are negotiating the budget.  By all reports, revenue projections are getting worse and "programmatic cuts" are being contemplated across all state agencies-at least for 2009.  The Governor continues her commitment to protect critical services for children and vulnerable adults, but …... if things get bad enough, cuts may be necessary.   You can make the difference, take action.  Send your letter today - see action below!

What differentiates health and human services?    As a basic principle, PAFCO continues to urge that no cuts be made to current direct services involving real people getting real services today.  For these citizens receiving current direct services, this is their safety net, their lifeboat, their fundamental need.  This is what differentiates the needs of the poor and vulnerable from all other groups.  This is their last resort, their final resource, whereas others may have other means to weather this type of economic or social crisis.  For many, they have no other way to provide for their basic necessities of life, continue their independence, escape violence, and live in dignity. The demands for basic needs will only grow during a worsening recession. 

Additionally we also urge no cuts in current basic capacity for health and human services, we must protect current services capacity as much as possible, since we are so far behind in so many areas already and demand is rising and community donations are already falling.  And with the recession worsening, things cut only get worse; demands will only continue to rise.  We also urge no freezes on staff or administrative cuts be made permanent.

PAFCO supports bonding and the use of all possibilities for revenues, (use of rainy day, rollovers, sweeps, etc) from the beginning of the session.  Many options, including eliminating tax cuts for those who can manage that financially during an economic downturn, need to be considered before we cut basic programs for vulnerable children, families and adults. In any case we must protect health and human services during an economic downturn as it gets worse and more people will turn to the publicly supported safety net for support and protection. 

NEGATIVE IMPACT OF REDUCING INCOME AND SERVICES FOR LOW INCOME FAMILIES

Cutting programs for low-income families may be the single most damaging step that states can take during a recession," said Kevin Carey for the Center on Budget and Policy Priorities. "Such programs are intended to act as automatic economic stabilizers, because they naturally expand to meet increased levels of need when families lose jobs and income. '

Reducing services for low-income people is especially hard on a state's economy, because these people tend to spend most or all of every dollar they receive. According to a report by economists Peter Orszag and 2001 Nobel Prize winner Joseph Stiglitz, cutting spending on programs that serve low-income people tends to reduce consumption and thus state economic activity by the full amount of the spending reduction.  (Center on Budget and Policy Priorities report - January 17, 2002)

hese types of cuts also don't make economic sense since these basic services typically prevent more costly institutionalization or hospitalizations.  They prevent homelessness and hunger and help people escape harm and violence.