Budget Reconciliation Bill and the Impact on Homeless PeopleThe US Senate recently passed S1932, also known as the Deficit Reduction Omnibus Reconciliation Act, a budget reconciliation bill that attempts to reduce the deficit by cutting spending on mandatory programs. A mandatory program is a program that must be continually paid for, such as Medicaid and food stamps, as opposed to a discretionary program, such as defense, which must apply for a budget every year. Currently, 56% of the budget consists of mandatory programs, and this is why the Senate is focusing on them. It has been stated by a number of senators that mandatory programs are “out of control,” and with the cuts that they are making, the Senate claims this bill will reduce the deficit by $39 billion over five years.
A few notes before discussing the specifics in the bill: It should be noted that Senator Frist proposed an amendment that the bill be renamed the “Moral Disaster of Monumental Proportion Reconciliation Act.” This title refers to the fact that many programs intended for the lower classes are being cut, and the moneys gained from the cuts are being used to provide tax breaks. Also, although all income levels across the board will receive tax breaks, the amount of the tax break significantly favors the wealthy. People whose annual income is over $1 million receive a break of $35,000, where as people whose annual income is under $1 million receive a break that ranges from $6 to $1,480.
(snip)
This bill is a clear attempt to scapegoat poor people for problems that arose from major tax cuts provided to the wealthy minority of the nation. Because of this, many local programs are going to be seriously affected. Although the bill still has to be discussed by both arms of Congress before running across the desk of the President, there appears to be not enough dissent to prevent this moral deficit from clouding the horizon of those already without hope.
Where to find additional information:National Low Income Housing Coalition www.nlihc.org
Center for Budget and Policy Priorities www.cbpp.org
Continued @
http://www.neoch.org/budg_bill_alert.htm(Prepared by the Northeast Ohio Coalition for the Homeless www.neoch.org)
Please STOP these budget cuts.... call your Representative toll-free @ 1-800-426-8073.