Budget_Resolution

Federal Budget Resolution

Many thanks to Janet Bauer at the Oregon Center for Public Policy for this information. To join an informational listserve moderated by Janet, visit http://groups.yahoo.com/group/OregonFederalBudget.

BUDGET ACTION

Today, March 17, a vote is expected on the Carper Amendment. Senator Smith needs to hear from Oregonians who support the Carper Reconciliation Amendment. Even if you have previously called voicing opposition to using the reconciliation process for tax cuts, call again now that the amendment is up for a vote and has an identified sponsor.As expected, the Chairmen of House and Senate budget committees produced budget resolutions last week that call for deep cuts to both discretionary and mandatory domestic programs. Floor debates will begin on Monday, March 14, 2005 and extend through the week, when amendments can be introduced.

Call Senator Smith Thursday morning Pacific Standard Time, toll free, 1-877-880-6704. This is main switchboard; ask for Senator Gordon Smith’s office.

Ask Senator Smith to support the Carper Reconciliation Amendment to eliminate the fast-track process for tax cuts.

The new Carper amendment would strike the instruction to the Senate Finance Committee to produce a "reconciliation" bill that cuts taxes by $70 billion between 2006 and 2010. "Reconciliation" is a fast-track maneuver traditionally used to support passage of politically challenging bills intended to reduce the deficit. A reconciliation measure needs only 51 votes to pass, not 60. Using the reconciliation process for tax cuts turns its intended purpose – deficit reduction – on its head. With the Carper amendment tax cuts would need to garner 60 votes for passage.

Additional talking points for Senator Smith:

Thank you for following through on your commitment to protect Oregon's children, elderly and working adults from cuts to the Medicaid program. We are counting on you.
Even with elimination of cuts to Medicaid, the proposed budget remains socially and fiscally irresponsible.
Oppose an unfair budget -- one that includes substantial reductions in key programs important to Oregonians that support K-14 education, workforce training, public safety, child care, housing, the environment and food security -- while at the same time calls for large tax cuts that benefit mostly wealthy Americans.

(Be sure to leave your name and address).

Background on the Federal Budget and Reconciliation Process

Both Chairmen forwarded budgets that propose unexpectedly deep cuts to the Medicaid program, one of the largest federal investments to the state. The amount of the cuts exceed that proposed by the President (7.6 billion over 5 years). The Senate budget committee proposed cuts of 15 billion over 5 years. The House budget committee proposed cuts of 15 - 20 billion over the same period.

SMITH AMENDMENT

Senator Smith introduced an amendment to entirely eliminate the proposed cuts to Medicaid. He proposes, instead of the cuts, to form a commission to evaluate the efficiency and effectiveness of the program. It is encouraging that he is following through on his stated commitment that he would oppose cuts to Medicaid.

We need to support the passage of this amendment.

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