FY 2007 Budget / Continuing Resolution

January 2007

NETWORK supports a federal budget (or Continuing Resolution) built on fairness, economic equity and compassion for those at the economic margins. This requires adequate funding of programs for food, child care, healthcare, housing and education. Federal policies must also support employment opportunities that allow people to provide for their families.

In Economic Justice for All, our Bishops state that, “The fundamental moral criterion for all economic decisions, policies, and institutions is this: They must be at the service of all people, especially the poor.”

Background

Throughout the Second Session of the 109 th Congress, legislators were unable to pass a budget for 2007 and were unwilling to make decisions on the most contentious of the appropriations bills. The House voted on all appropriations except Labor, Health and Human Services and Education, which include funding directed to meet the needs of persons with the fewest resources. The Senate passed only the appropriations affecting defense and homeland security.

At the end of September, legislators agreed to a Continuing Resolution (CR), basing continued government funding on FY2006 budget allotments. This first CR was in effect until December. Before adjourning in December, they agreed to another CR, which would be in effect until February 15, 2007. In order to allow time for work on the FY2008 budget, Congress had the CR function as the federal budget until the end of September.

Some adjustments in spending are still possible, as the 2006 “earmarks” will not continue to be funded. This is critical, as there have been drastic cuts to many human needs programs over the last five years. These cuts disproportionately affect seniors and children. Below are examples of programs with cuts greater than 10% since 2002:

25% Youth Training

20% Reintegration of Youth Offenders

15% Maternal and Child Health Block Grant

12% Child Welfare Services

10% Family Violence/Battered Women’s Shelters

100% Community Food and Nutrition Program

10% Nutrition for the Elderly

12% Child Care and Development Block Grant

65% Even Start (early screening, parent education and developmental skills)

Both the House and Senate have proposed additional cuts in the FY2007 budget (may appear in the Continuing Resolution). These include 24% (House) and 22% (Senate) cuts in LIHEAP (Low Income Heating Assistance Program) and 26% (House) and 26% (Senate) cuts in the Social Services Block Grant (This is devastating as caseloads for social workers are already much too large.)

The Continuing Resolution was filed in the House of Representatives on January 30, 2007. With this CR, Congress is attempting to stem the hemorrhage inflicted by the severe cuts to human needs programs in the last five years. Areas in which some increased spending is proposed include: Veteran’s Healthcare, Defense Health Programs, Military Housing, Pell Grants for college expenses, Head Start, Community Health Centers, Section 8 housing vouchers and Global HIV/AIDS.