Newsbytes - Special Budget Edition

February 24, 2005

This special edition of Newsbytes is focused on the federal budget as it applies to human needs and community development.

WHY THIS BUDGET IS DIFFERENT: WHY WE NEED TO ACT, TOGETHER

The President's proposed budget requires our attention, now, because of a provision that would cap federal domestic discretionary spending for five years.  Why does that matter?  Because a significant proportion of the programs financed by federal dollars at human service and community development agencies come from the federal domestic discretionary budget.  Because of this provision, budgets will be cut in each of the next five years.  

According to the Center on Budget and Policy Priorities, domestic discretionary spending has been at 3% of GDP for fifteen years.  The Congressional Budget Office pegs it at 3.8% in 2005.  The Assembly estimates that human services and community development programs comprise approximately 45% of discretionary spending, or between 1.4% and 1.7% of GDP.  A cap on spending---and bear in mind that discretionary spending includes much more than human services and community development---would reduce the nation's investment in people and communities over the next five years to the lowest level in two decades.

A PROPOSED APPROACH

The National Assembly proposes that members consider a three-pronged approach:

Prong 1:  Each agency addresses the budget issues in its own areas of expertise, in collaboration with colleagues in the Senior Policy Council of the Assembly, the Washington Group of the National Collaboration for Youth, and special interest coalitions.

Prong 2:  Assembly members join forces to make Congress and the Administration aware of the importance of sustained, if not increased, investment in human services and community development, through federal domestic discretionary spending.

Prong 3:  As suggested in the previous issue of Newsbytes, the Assembly and its members use their meetings and communications to make their constituents aware of the realities of federal spending.  To that, we would add, making them aware of the negative impacts of budget caps on Social Security and Medicaid on children, families, the elderly, people with disabilities, and communities.

MESSAGE ABOVE THE NOISE

There is a cacophony of voices (one might say, noise) about the President's proposals and the budget in general.  Different issue and population coalitions are organizing their responses on their issues, and well they should.  The problem for the National Assembly and its members is that we care about issues that fall in many different coalitions' bailiwicks and, quite frankly, we tend to take more moderate, bipartisan positions than many of the specialized, broad-based coalitions.

The other problem is that amid the noise of all the niche groups and special interests, the big-picture messages are not getting articulated.  And the matter of the 5-year cap on domestic discretionary spending and the level of funding for human needs and community development is clearly one of those issues---one of the most important. 

What we are suggesting is that as a group of organizations that know human needs and communities better than most in the country, the National Assembly and its members give collective voice to a simple message:  as a nation, we need to sustain, if not increase, the level of investment in people and communities via federal discretionary funding.

The Time to Act is Now!

Time is of the essence to mobilize local and national advocacy efforts. March is particularly important as that's when detailed Congressional action on the budget begins. Following are key elements of the process in March and opportunities for action:

March (within 6 weeks after the President's budget is released)

• It is anticipated that the House and Senate Budget Committees will draft a budget “mark-up” – a revised draft of President's budget -- the week of March 7 th .  It is expected that the markup will be brought to the House and Senate floors for a vote on the budget resolution the following week.

Reconciliation instructions may be included in the budget resolution which can direct committees to make cuts to entitlement programs or change tax laws to reach spending and revenue goals.

• Budget Resolution Debated on House and Senate Floors: Proposed House and Senate budget resolutions debated and voted on. Representatives and Senators have the opportunity to offer amendments to the resolution, including amendments to change or delete reconciliation instructions.

Opportunities for Action at This Stage:

• Focus advocacy (calls, letters, meetings, public education) on chairs and members of House and Senate Budget Committees and House and Senate Party Leaders; State Governors and locally elected officials; and moderate Representatives and Senators. (http://www.communitychange.org/shared/publications/downloads/issues_federalbudget/Key_Actors_in_Budget_Fight.pdf )

For more information on the budget process, click here

Resources

ANALYSES OF PRESIDENT'S BUDGET

A United Way of America analysis summarizes proposed changes in the President's FY 2006 budget for selected education, social welfare, and health programs.  It also includes a review of the president's proposed changes in the federal budget process. For more information, CLICK HERE

The February issue of Volunteers of America's Advocacy News analyzes the President's FY06 budget by departmental program area (i.e., selected programs in the U.S. Department of Health and Human Services, Department of Education, etc.). For more information, CLICK HERE

A Center on Budget and Policy Priorities report provides state-by-state estimates of projected funding reductions through 2010 in a variety of areas (such as K-12 education programs, children and family services programs, and community development programs) and the number of families or individuals in each state who could lose assistance in various programs.

For the report, CLICK HERE

For the state-by-state tables, CLICK HERE

The Budget and Economic Outlook: Fiscal Years 2006 to 2015, Congressional Budget Office.

For more information, CLICK HERE

HOW THE PARTIES SEE IT

Congressional Budget Committees

House Budget Committee:

http://www.house.gov/budget/  

http://www.house.gov/budget_democrats/  

Senate Budget Committee:

http://www.senate.gov/~budget/republican/

http://budget.senate.gov/democratic/

HOW THE FEDERAL BUDGET PROCESS WORKS

The Center on Budget and Policy Priorities has prepared an Introduction to the Federal Budget Process . For more information, CLICK HERE

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Following is a message from one of our members on another timely matter of interest to many Assembly members.  For other policy information from the Assembly and its members, go to www.nassembly.org and click on Public Policy.

United Way of America Analysis of the CARE Act

Congress is expected to act soon on federal legislation that would provide several billion dollars in new tax incentives for charitable contributions, rework existing federal law governing charities, and provide increased funding for Individual Development Accounts (IDAs), the Compassion Capital Fund, and the Social Services Block Grant. This analysis reviews the legislation and, where applicable, indicates UWA's position on individual provisions. For more information, CLICK HERE

Newsbytes is the biweekly E-newsletter of the National Human Services Assembly that contains information for and about the nonprofit health and human services sector.