March 7, 2008

Republican Leadership force budget "freeze" and cuts through Legislature, but will they produce a thaw in negotiations. Take Action, oppose these cuts!

HOUSE AND SENATE PASS BUDGET "FREEZE" BILLS but will they lead to a thaw in negotiations.

The House and Senate Republicans passed budget "freeze" bills (SB1300 and HB2857) this week.  However most observers are wondering how these actions will help produce real solutions in the budget negotiations.  And others wonder why the "freeze" bills needed to include cuts to eliminate the General Assistance program, other lump sum cuts to DES critical programs, lump sum cuts to public health programs, big sweeps from the Housing Trust Fund and other critical program for children and vulnerable adults.  Many see this as a back door approach by the Republican Leadership at the Legislature to making the cuts it really wants, rather than the publicly stated goal of freezing funds in various accounts while negotiations proceed.  It would not seem necessary to include cuts at this point if freezing funds was the real purpose at this time. 

PAFCO OPPOSES THESE CUTS - We urge Governor's veto!

The Protecting Arizona's Family Coalition strongly opposes this budget approach that is the freezes and cuts as embodied in SB1300 and HB2857. We urge the Governor to veto these budget bills and urge a return to the bi-partisan negotiations for more reasonable approaches.

These cuts in these bills threaten the very basic safety net and "lifeboat" services for many children and vulnerable adults.  For example, these bills eliminate the General Assistance program curtailing services to 1300 people with serious disabilities.  These bills will cause harm to children and families by their across the board cuts in an agency like the Department of Economic Security.  Based on data from DES, cuts would be forced in child care, domestic violence, home and community services for elderly, vocational rehabilitation, food programs --- all basic necessities of life programs --- the lifeboat or final safety net for many Arizona's families.  These bills will force curtailment of public health services in the Department of Health Services, and loss of critical affordable housing and homeless prevention services from the Housing Trust Fund.  

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)

·         These 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.   

03-25-2008

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