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 Institute for the Study of Civic Values
1218 Chestnut Street, Suite 702
Philadelphia, PA19107
P: F:
www.phillyneighborhoods.org
For Immediate Release
March 28th, 2006
Spending Cuts in 2007 Bush Budget Will Cost the DelawareValley at least $166 Million
Budget cuts proposed by President Bush in the 2007 federal budget will cut support for neighborhoods, communities, and families in the 5 county Philadelphia metropolitan area by at least $166 million from what the region’s communities and families received from Washington in 2004.
This is the conclusion of an analysis of the Bush budget by the Institute for the Study of Civic Values applying the percentage cuts in community and family programs proposed in the 2007 budget to the level of funding that each county in the Delaware Valley received from these programs in 2004. The 2004 county data is available through the Federal Funds Consolidated Reports posted on the Census Bureau Web site.
The ISCV analysis shows that the Bush administration seeks to downsize in every area of importance to our neighborhoods and communities--housing and community development, law enforcement and public safety, schools, and community services. The region loses $78 million in these areas.
In addition, DelawareValley families will lose $88 million in support from the Medicaid, Food Stamps, and Fuel Assistance programs. While Philadelphia will be hit hardest by these cutsBwith a loss of more than $126 million-- the four surrounding counties will lose $40 million as well.
The impact of these budget cuts on families and communities will be severe:
*More than 635,000 DelawareValley residents eligible for Medicaid face potential loss of benefits and higher co-pays, as the Commonwealth of Pennsylvania loses its ability to keep pace with growing demand.
According to the Pennsylvania Department of Public Welfare, the State already has lost nearly $1 billion in funding for medical insurance and assistance programs since 2003. Additional cuts will strain our ability to provide the support that low and moderate income families need
*Low income working families will be denied food stamps.
*Budgets for Philadelphia’s home repair and weatherization programs have already been reduced from $24.1 million in 2005 to $16.4 million in the coming year, as a result of reduced support from the Community Development Block Grant. Another 20% cut next year will bring this budget down to less than $15 million for homeowner repairs for the entire City.
*All the major programs supporting local law enforcement and public safety are eliminated in the Bush Budget, at a cost of more than $21 million to the Philadelphia region. Without needed federal support, City spending on the Philadelphia Police Department has risen from $467 million in 2005 to a projected $498 million in the coming fiscal yearBan increase of more than $30 million.
*Federal support for schools and students in the DelawareValley will be reduced by $11.1 million under the Bush 2007 Budget.
*The Bush Budget calls for the elimination of the Safe and Drug Free Schools Program that is presently used by the School District to combat violence in and around our schools.
*The Social Service Block Grant-- a major source of funding for child care and related services--will be cut by $8.7 million in the DelawareValley, with a $2.2 million cut in services provided by Bucks, Chester, Delaware, and MontgomeryCounties.
*Community Action Agencies that provide a critical safety net for low income residents in the suburbs will likely disappear if Congress goes along with the administration’s plan to end the Community Services Block Grant.
e-commerceThese are just a few examples of what the impact of the Bush Budget on the DelawareValley will be, if Congress approves the budget. And this does not include cuts in programs like Adult Literacy, administered directly by the Commonwealth of Pennsylvania and now faces a $13.5 million cut in the roughly $20 million that the State has received from Washington for this program. Philadelphia presently receives $4.9 million in federal funds for this this program.
The City of Philadelphia has been working hard in Washington to stave off further cuts in the Community Development Block Grant central to our neighborhood revitalization efforts.
More than 90 human and social service agencies in Pennsylvania have signed a letter drafted by the Coalition on Human Needs and endorsed by 1,200 organizations nationally that calls upon the Congress to oppose cuts in community programs like the Community Development Block Grant, to oppose reductions in family support programs like Medicaid and Food Stamps, and to oppose further tax breaks that are not offset with other revenues.
While Senators Specter and Santorum did introduce amendments to the Bush Budget that restored some of the cuts proposed by the President, the budget they supported in the Senate still includes significant reductions in critical areas. The budget passed by a narrow 51-49 margin, with Republican Senators Collins (ME), Chafee (RI), De Wine (Ohio) and Nelson (Nebraska) joining all but one Democat in voting No.
The House of Representatives will be adopting its own budget in April, likely reflecting most of the Bush administration’s proposals. Six Delaware Valley Representatives will be voting on this budget--Representatives Robert Brady, Chaka Fattah, Allyson Schwartz, Jim Gerlach, Curt Weldon, and Michael Fitzpatrick.
The Institute for the Study of Civic Values will be keeping our extensive email network of neighborhood and human service activists in this region informed about the impact of the Bush Budget on our communities. We will be tracking the votes that our representatives cast at each stage of the budget process and highlighting the spending cuts that remain in the budget as it works its way through Congress.
For Pennsylvania Budget Information, go to the Pennsylvania Page of this web site.
Contact: Ed Schwartz, Institute for the Study of Civic Values, .
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