HARRISBURG, PA (August 8, 2012) — If Congressional budget proposals do not include significant new revenue efforts to reduce federal deficits, the burden would fall squarely on states. This approach will damage Pennsylvania’s economic recovery and future economic growth through drastic cuts to federal investments in schools, roads and bridges, safe communities, and disaster relief.

Ryan Budget Cuts Would Be Three Times Bigger Than Automatic Cuts Scheduled for January

Read the full report from the Center on Budget and Policy Priorities.

HARRISBURG, PA (August 8, 2012) — If Congressional budget proposals do not include significant new revenue efforts to reduce federal deficits, the burden would fall squarely on states. This approach will damage Pennsylvania’s economic recovery and future economic growth through drastic cuts to federal investments in schools, roads and bridges, safe communities, and disaster relief.

According to a report released today by the Center on Budget and Policy Priorities, a non-partisan policy research organization based in Washington, D.C., Pennsylvania would lose an estimated 22 percent, or $1.063 billion, in federal funding for education, clean water, law enforcement, and other state and local services in 2014 alone if the federal spending plan approved in March by the US House of Representatives (the “Ryan Budget”) is adopted. Congressman Paul Ryan’s plan also would shift other very large costs to states by reducing sharply federal funding for Medicaid (in addition to repealing the health reform law), and likely by cutting deeply funding for highway construction and other transportation projects.

“Deficit-reduction should not come at the expense of Pennsylvania’s economic future,” said Sharon Ward, director of the Pennsylvania Budget and Policy Center. “Congress should take a balanced approach that includes revenues to avoid cuts that will irreparably harm our ability to educate our children, build roads and bridges, and have clean water and safe communities — all key elements of a strong future economy.”

Federal funding for states, counties, and cities very likely would be decimated by an unbalanced approach to deficit reduction in the next decade. That is because there is bipartisan agreement that significant deficit reduction is needed, but federal policymakers also agree in broad terms that savings from other major parts of the budget — defense, Medicare and Social Security — should be limited. Without new revenue, federal funding for states and local areas would thus be one of the few remaining sources of large potential savings.

These cuts likely would bring federal aid to state and local governments to historic lows. By 2021, under the Ryan budget, federal grant programs for states, counties, and cities likely would be less than half the average of the last 35 years.

New cuts would compound those already made by Congress to state and local aid last year and to deep cuts that Pennsylvania has made as a result of the recession. During the past four years, the Commonwealth has cut public school funding by close to a billion dollars, reduced county human services funding by 10%, eliminated General Assistance and slashed economic development programs.

Ryan Budget Cuts to Federal Funding for Pennsylvania Far Worse Than “Sequestration”

The funding cuts to states, counties, and cities under the Ryan budget proposal would far exceed the automatic cuts scheduled to begin in January, often referred to by the term sequestration. In 2014, the Ryan non-defense discretionary budget cuts would be three times as deep, inflicting far more damage than sequestration. In later years, as the sequestration cuts diminish but the Ryan cuts remain as deep, the difference would be even larger.

Specifically, the Ryan budget proposal likely would reduce federal funding in these areas in Pennsylvania:

• Education. Head Start, teacher quality programs, special education, and Title 1 funding for schools in high-poverty areas likely would face deep cuts.
• Transportation. Likely cuts would further set back Pennsylvania’s ability to build and repair roads, bridges, airports, and public transportation systems.
• Public safety. Pennsylvania would likely have less funding for disaster assistance and grant programs that help local police departments hire, train, and equip officers.
• Community development. Funds that help improve water and sewer systems and revitalize deteriorating neighborhoods likely would face cuts.
• Housing. Pennsylvania likely would be less able to provide rental assistance and heating and cooling assistance for low-income people, many of them elderly.
• Workforce. Pennsylvania would have fewer resources for workforce training, placement services, and childcare assistance for low-income working parents.
• Health. Funding cuts would hinder Pennsylvania’s ability to keep community health centers open, provide mental health and substance abuse services, and give nutrition support to low-income mothers and young children.

“Deep cuts to investments in education and basic services will only serve to put future generations at risk,” said Kathy Fisher, Economic Security Analyst for Public Citizens for Children and Youth (PCCY). “Congress can reduce the deficit and honor our commitment to our children by taking a balanced approach that includes new revenue.”

Northcentralpa.com – August 15, 2012 – 在线阅读文章