March 22, 2008

BUDGET NEGOTITATIONS PROGRESS - BASIC QUESTIONS -- What distinguishes the needs of the poor and vulnerable in a budget crisis? Have you taken action yet to protect critical health and human services?

BUDGET NEGOTIATIONS ARE PROGRESSING, PARTICULARLY ON 2008. 

House and Senate leadership along with the Governor seem to be coming to agreement on the budget.  Budget bills may appear within the next couple of weeks - or sooner.   Apparently agencies will be given lump sum targets for cuts,  but not required to make across the board cuts.  But stay tuned.  Are you and your colleagues prepared to act quickly to stop cuts when bills are published and details distributed? 

Take Action now too by sending a letter urging no cuts to health and human services.  SEE ACTION LETTER BELOW!

PAFCO URGES NO CUTS TO HEALTH AND HUMAN SERVICES.

PAFCO continues to urge that no cuts be made to current direct services involving real people getting essential services today.  While we recognize that there may need to be cuts in many areas to weather this economic crisis, we believe no cuts should be made to current services for vulnerable populations. 

BASIC QUESTIONS

Policymakers should ask themselves three basic questions when contemplating particular budget cuts:

Is it humane?  Will the cut result in loss of current, essential services a human being depends on for survival- food, shelter, medical care, etc.? For example, cuts to food assistance programs mean families go hungry.

Is it safe? Will the cut jeopardize the health or safety of the person receiving services or others?  Certain cuts can force people into dangerous or unhealthy situations.  Cuts to domestic violence shelter puts women seeking safety in grave physical danger.  CPS cuts leave children vulnerable to abuse.

Is it smart?  Some cuts are penny-wise and pound-foolish.  Will the cut merely result in moving the recipient from one program to another with even higher costs?  For example, cutting a single mother's child care assistance will quickly force her out of work and back on welfare, food stamps, and AHCCCS.  Other cuts may forfeit federal match money that would flow directly into the Arizona economy.

WHAT DISTINQUISHES THE NEEDS OF THE POOR AND VULNERABLE

With the recession deepening, things will only get worse.   For children and vulnerable populations, these services are their safety net, their lifeboat, their fundamental need. This is what distinguishes the needs of the poor and vulnerable from all other groups.  The public services safety net is their last resort, their final resource, whereas others may have other means to weather this type of economic or social crisis.  The poor and vulnerable have no other way to provide for their basic necessities of life, health, safety and care. 

Cuts in health and human services can be inhumane and counter-productive.   These basic services typically prevent more costly interventions by government.  The public safety net helps prevent homelessness and hunger and helps people escape harm and violence.  Cuts to the safety net stop elderly from living independently, stop low income mothers from working, force children out of child care, and force victims of domestic violence onto the streets rather than shelters. 

DEMAND GROWING

The demands for basic needs will only grow during a recession.  The Food Stamp caseload is growing, requests for AHCCCS health care are up, food banks are experiencing increasing demand, and CPS referrals are up. Even Adult Protective Services referrals are growing.   We urge no cuts to our capacity for health and human services. We must protect current services as much as possible, since we are so far behind in so many areas already, while demand is rising and community donations are falling.  We also urge freezes on staff or and administrative cuts not be permanent. We must not play into the 'starve the beast" mentality. 

MANY REVENUE OPTIONS MUST BE CONSIDERED - DON'T CUT TAXES.

PAFCO supports bonding and the use of all possible sources for revenues, (use of rainy day, rollovers, sweeps, etc).  All options, including raising taxes on those who might afford it during an economic downturn, need to be considered before we cut basic programs for vulnerable children, families and adults. The state might even have to consider putting off investments in other important areas in order to protect the basic necessities of life for vulnerable children and adults.

REDUCING SERVICES FOR LOW INCOME FAMILIES IS HARD ON A STATE'S ECONOMY

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)