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Analysis
By Economic Policy Institute and
Institute for America's Future
Shows Federal Budget Agreement
Cuts $755 million from
Pennsylvania
Coalition Urges Senators Specter
and Santorum To Reject Tax Cut for
Wealthy
And
Invest in Education, Health Care,
Other Crucial State Programs
During Worst National Budget
Crisis Since World War II
Philadelphia—Pennsylvania will
suffer $755 million in cuts to key
programs over the next 10 years,
while Congress sets aside billions
for tax breaks for the wealthy,
according to a new report by the
Economic Policy Institute and
Institute for America’s Future.
The cuts to Pennsylvania detailed
in the analysis are included in
the 2004 federal budget resolution
Congress approved just before the
current two-week congressional
recess began. A coalition of
community activists and labor
leaders urged Senators Specter and
Santorum to reject the president’s
call for more tax cuts for the
wealthy when Congress reconvenes
in May and instead to focus on
investing in Pennsylvania’s
economy to help working families
who are bearing the brunt of the
recession.
“Congress approved a budget that
makes the situation in
Pennsylvania worse, not better,
even as they set aside billions
for tax cuts that benefit the
wealthy. That’s the wrong
choice. We have serious budget
problems, a weak economy, and
since January 2001, Pennsylvania
has lost 85,000 jobs,” said John
Potts, President of Citizens for
Consumer Justice. “We can’t allow
Congress to continue to push for
tax cuts that favor an elite few
while working families and
Pennsylvania have to choose
between cutting health care,
safety programs or education.”
Barbara Burgos DiTullio,
Pennsylvania Fair Taxes for All
Coalition
Mary Hurtig, Mental Health
Association
Sharon Ward, Philadelphia Citizens
for Children & Youth
George Tamaccio, Pennsylvania
League of Conservation Voters
Susan Gobreski, League of
Conservation Voters
Evonne Tisdale, Philadelphia
Unemployment Project
Jean Alexander, Transport Workers
Union, Local 234
The
report revealed that over the next
ten years, Pennsylvania would lose
discretionary funds in the
following areas:
-
Education & Training - $140
million;
-
Health Care - $112 million
-
Police and Security - $54
million
-
Transportation - $136 million
-
Basic Supports for Low Income
Families - $138;
-
Environmental and Natural
Resources - $148; and
-
Agriculture - $27 million
The
budget agreement cuts spending in
every state, while setting aside
billions to pay for tax cuts that
President Bush has requested.
Earlier this year President Bush
asked Congress to approve a tax
cut of more than $700 billion
which will give 60 percent of its
benefits to the wealthiest 10
percent of tax payers. The cuts
to Pennsylvania are based on
funding levels approved in the
budget agreement and will stay the
same with any size tax cut, unless
Congress changes the budget
resolution to include more funding
for already struggling states.
The
federal budget cuts approved by
Congress will hit the states
especially hard at a time when
most of them are struggling to
close huge budget shortfalls and
working families are bearing the
brunt of the recession. More
working families are losing health
insurance, their wages are falling
and states are unable to create
jobs by keeping up with
investments in infrastructure
spending. Pennsylvania has
already lost ground in the
following areas:
-
As
of February 2003, 122,100
workers in Pennsylvania had been
out of work so long they ran out
of state and emergency federal
unemployment insurance benefits
and 39,300 of those workers are
still unable to find jobs.
-
1.1
million individuals in
Pennsylvania have no health care
coverage;
-
1,158,000 Pennsylvanians are
poor, including 384,000
children, 14% of all children in
the state;
-
81
percent of Pennsylvania’s public
schools require repairs in order
to be in good overall
condition. Needed repairs and
upgrades will cost an estimated
$10,408,541,747.
When Congress returns to
Washington in early May both the
House and Senate will make final
decisions about the tax cut.
“This tax cut is not a done deal
and the budget cuts to
Pennsylvania don’t have to be
either. We are asking Senators
Specter and Santorum, and the
entire Pennsylvania Congressional
delegation to put our priorities
ahead of tax cuts that won’t
improve our economy and instead to
invest in programs that are proven
to create jobs,” said Barbara
Burgos DiTullio, coordinator of
the Fair Taxes for All Coalition
in Pennsylvania.
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