Letter to Sen. Sununu: Federal cuts will mean "NH would be faced with two equally unacceptable options"

Children's Alliance urges NH Sen. John Sununu to resist cuts to federal entitlement and discretionary programs

February 22, 2005

The Honorable John E. Sununu
Office of Senator Sununu
1589 Elm Street, Suite 3
Manchester, NH 03101

Dear Senator Sununu:

Thank you for taking the time yesterday to discuss our shared interest in protecting the health and well being of New Hampshire’s children. This letter provides a follow-up to that conversation reiterating our key concerns.

W e have three key concerns about the President’s budget as it affects the children and families of New Hampshire.

First, we understand that congressional leaders are considering passing a budget that would require Senate Committees to make cuts to entitlement programs such as Medicaid, foster care and child care, through the fast-track budget “reconciliation” process.

A report from the Center on Budget Priorities released this week indicates that proposed budget rule changes would cut $60 billion in federal Medicaid dollars to the states over the next 10 years. We are strongly opposed to these cuts.

As discussed, Medicaid and child care funding are not wise areas in which to seek savings. Investments in children’s health, and investments in quality child care, have been found to be sound public investments -- investments that not only meet individual needs today, but also build human capital for the future. In the face of federal cuts, New Hampshire would be faced with two equally unacceptable options: either deny critical services to eligible individuals or to find new state monies to make up for the federal cuts.

Medicaid and child care funding were created as federally protected programs not only to guarantee individual services but also to share the cost of extraordinary services across states. We oppose any budget changes that shift costs to the states.

Second, we are concerned about proposed rule changes that would impose a five-year cap on discretionary spending. The President’s budget calls for cuts of $214 billion in discretionary funding by 2010 -- this means average cuts of 16% on domestic discretionary programs like education, housing assistance and child care.

In New Hampshire, such cuts would have direct and harmful effects. In education, New Hampshire stands to lose $51.9 million dollars over a four-year period, including cuts to funding for special education and school improvement. Given our current crisis in education funding in New Hampshire, it is hard to see where such a loss of federal revenue could be absorbed. By the state? By local school districts?

In human services, the President’s budget would result in cuts to WIC funding, foster care services, and child care funding, including a projected loss of child care assistance to 1,000 children in 2009.

Discretionary programs did not cause the current deficit and should not be targeted for budget cuts. We ask you to stand up for education and human service funding -- and to ask the President to look to the revenue side of the budget for answers. The deficit was caused by the tax cuts and the war in Iraq. It will be exacerbated by current proposal to extend and make permanent those tax cuts.

This proposal is inconsistent with the New Hampshire vision of government -- a government that is lean but not mean

Third, in the area of TANF, we ask for your support in moving forward a TANF reauthorization bill separate from any possible budget reconciliation bill. We understand that Senators Grassley and Baucus are working in a bipartisan coalition to bring forward a bill based on the work of their committee last year. As a bipartisan effort, their work seeks to accommodate concerns of senators on both sides of the aisle by accepting certain changes, including additional funding for child care.

We believe the TANF program is at great risk of serious cuts if TANF reauthorization is undertaken through the budget reconciliation process. We ask that you support completing TANF reauthorization this year as stand-alone legislation rather than in the budget reconciliation process.

Please know that the Children’s Alliance stands ready to support your work creating a federal budget that is friendly to our children and families. Powerless children need powerful friends. We hope you will be a powerful friend for children and oppose harmful budget proposals.

With thanks for your time and your service to our state, I remain,

Very truly yours,

Ellen Shemitz

President