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Federal Budget Votes in Congress and Their Impact on Maine


It has been a difficult time for advocates of children and countless other domestic programs we have come to depend on to meet the needs of communities, families and individuals.

Budget resolutions passed by both House and Senate raise high hurdles to those trying to defend social programs, but there were some significant victories that give us reason for hope.

The major win for children was passage of the Smith-Bingaman amendment, authored by Sen. Gordon Smith (R-Oregon) and co-sponsored by Sen. Jeff Bingaman (D-New Mexico). It instructs the Senate to reject major cuts in the Medicaid program proposed by the Bush administration and incorporated into the original version of the House and Senate budget resolutions. As much as $20 billion could be lost in the first year, and this could cost Maine as much as $80 million.

Having been at the State House during the current budget negotiations, and watching the struggle to restore some $53 million in MaineCare cuts the Baldacci administration felt it must propose, I can tell you how devastating it would be if Congress pulled out the rug from under us. I just don't know how we would protect basic health care services for kids, such as the vastly successful State Children's Health Insurance Program (SCHIP/ Cub Care) if Congress had adopted this Medicaid funding proposal. Instead, the amendment will make no immediate cuts but create a special commission to find efficiencies in Medicaid.

It took a broad-based coalition to pass Smith-Bingaman – all 44 Senate Democrats, one independent, and seven Republican senators, including our own Olympia Snowe and Susan Collins. We all owe them a debt of gratitude. Ultimate victory is far from assured. The differing House and Senate budget resolutions will now go to a conference committee, and in the past, majority leadership has packed such committees with party loyalists. Still, Smith-Bingaman has put the issue of health care cuts to states and communities in the spotlight, and we will fight hard to make sure it stays there.

Several other important Senate amendments came close to passage. One, which would have preserved the Senate's "pay as you go " rules that require any spending increases or tax cuts to be matched elsewhere by corresponding spending cuts or tax increases, was defeated on a tie vote, 50-50. Sponsored by Sen. Russ Feingold (D-Wisconsin) and co-sponsored by Sen. John Chafee (R-R.I.) it would have placed tax cuts and spending proposals on an even footing – particularly important, of course, because we are dealing not with spending increases in children's programs, but serious cuts. Now, the Senate resolution places $45 billion in new tax cuts on a "fast track" that will not have to be offset, putting further pressure on domestic spending programs, which have been disproportionately targeted for reductions.

A third amendment, also targeted at new tax cuts, was also narrowly defeated. Sens. Snowe and Collins voted for all three amendments, and can be counted on to give close scrutiny to the conference report.

While preliminary, the Senate votes definitely made an impression. The New York Times reported that the Smith-Bingaman amendment "was a rebuke to both the White House and the Republican leadership, and it threatens to prevent Congress from adopting a final budget this year." The Times quoted the chairman of the House Budget Committee, Rep. Jim Nussle R-Iowa) as saying, "We have arguably our work cut out for us now . . . If the Senate is not going to follow in the first item on the president's agenda, then that is, I think, a signal that the president needs to receive and react to immediately."

It wasn't all clear sailing. After voting to protect Medicaid, the Senate also voted for a $134 billion tax cut package -- $34 million more than President Bush asked for, and $64 billion more than Senate Republican leadership had requested. Among the new tax cuts was a measure to reverse the taxation of Social Security benefits for upper-income taxpayers that was contained in President Clinton's first budget in 1993. The vote stunned both Republicans and Democrats. Sen. Pete Domenici (R-N.M.), prominent in budget debates for years, said, "It provided a huge amount of tax cuts. We didn't know what we were doing."

Despite the victory on Medicaid and MaineCare funding, the outlook remains grim for other important children's programs. As "discretionary" programs – part of the 17 percent of the budget Congress can reduce without changing existing law – Maine may well feel the effects of reduced aid for Head Start, special education, home heating assistance, and other programs vital to the well-being of children.

We were successful, with the strong backing of Sen. Snowe, a member of the Finance Committee (not to be confused with the Senate Budget Committee that proposed the budget resolution) in separating the reauthorization of TANF (Temporary Aid to Families, or welfare) from the budget, which gives us the opportunity to avoid further cuts there.

Overall, the outlook for children's programs is troubled, but not entirely bleak. We are getting excellent support from our Maine delegation – Reps. Tom Allen and Mike Michaud in House, as well as Snowe and Collins in the Senate – and we will do our best to ensure that damage is minimized and basic services maintained.

In an era when defense and homeland security have achieved unprecedented prominence, pressure for tax cuts continues unabated, and the federal deficit is soaring to record levels, the fight for kids programs is exceedingly difficult. We will continue to count small victories, and not give up the fight.

Elinor Goldberg
Executive Director
Maine Children's Alliance
207 623 1868 x 203
303 State Street
Augusta, ME 04330
egoldberg@mekids.org
www.mekids.org





Updated: Sep 4th, 2008 - 15:24:01
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