For Immediate Release
Monday, February 04, 2002
Bush Domestic Budget Ignores U.S. Economic Needs
Homeland Security Aid Overdue, But Plan Risks Economic, Health, Retirement Security
WASHINGTON —The American Federation of State, County and Municipal Employees, AFL-CIO, sharply criticized the Bush administration's proposed fiscal year 2003 budget released today for its lack of support for vital domestic spending priorities beyond anti-terrorism measures.
AFSCME welcomed the administration's new emphasis on aid to states and localities to strengthen homeland security, including additional funds to boost the nation's long-neglected public health system, its first line of defense against bioterrorism and other threats. But the union pointed out that the budget raids the Social Security and Medicare Trust Funds to help pay for the President's 10-year tax cut for the wealthy, fails to provide for adequate prescription drug coverage under Medicare, and is filled with industry-friendly tax breaks and spending cuts in critical areas.
"While we stand side-by-side with the President in the fight against terrorism at home and abroad, we believe that his other proposals would devastate the economic, health, and retirement security of all Americans," said AFSCME President Gerald W. McEntee.
Under the Bush budget, domestic spending unrelated to security would increase at less than the projected rate of inflation. Among the specific budgetary cuts criticized by AFSCME were:
- States and localities, already reeling from the recession and skyrocketing health care costs, would be further harmed by business tax cuts and a $9 billion reduction in Medicaid funds;
- Job training cuts for laid-off workers and at-risk young adults;
- Cuts in federal highway spending that would force states to abandon or delay many highway projects and leave hundreds of thousands more people unemployed; and
- No more funding for hundreds of after-school, day care, and mentoring services.
The nation's long-term fiscal health and key budget priorities would suffer even more damage if the President succeeds in making his 10-year tax cut for the wealthy permanent, which would cost the federal government at least another $600 billion, or about 30% of all revenues through 2012, according to the nonpartisan Congressional Budget Office. And he has advocated the partial privatization of Social Security, which would cost the nation an estimated $1 trillion and subject individual taxpayers' retirement security to the ups and downs of the stock market.
"Millions of working families trust their tax dollars will be used to promote economic growth and help them feel more secure about their health and retirement, but this administration has failed them in all of these critical areas," President McEntee added.
In related news, as states nationwide experience a $50 billion deficit, AFSCME will host a conference to discuss budget strategies Feb. 13-15 at the Washington Omni Shoreham Hotel.
