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The Budget Fight Ahead in 2005

Safeguarding the structure and funding for the Food Stamp, Child Nutrition, and other federal safety net programs will be a challenge in 2005 as the President and/or congressional leaders likely will seek to cut the federal budget deficit. While it is too early to predict the scope or specifics of proposed cuts for the FY 2006 federal budget, proposals could involve deep cuts, basic changes in entitlement programs in a fast track “reconciliation” bill and/or imposition of “spending caps” on entitlement programs. Any of these changes would threaten the ability of the programs to serve people in need. Structural changes, particularly a block grant and in some cases a spending cap on multiple entitlement programs, would undermine the programs’ ability to expand during an economic downturn or in response to an increased share in the number of eligibles who wish to participate in the program. Under these circumstances a fixed level of spending could result in across-the-board cuts or waiting lists to access the programs.

At the national level, many organizations are already gearing up for a possible budget fight this year. FRAC and the Center on Budget and Policy Priorities are collaborating on materials for use by nutrition program advocates. Families USA has begun posting analyses of threats to the Medicaid Program and CBPP’s health team will be collaborating with Families USA in that effort. The Coalition on Human Needs (CHN) is coordinating efforts by groups working on a broad range of low-income programs. And the Fair Taxes for All Coalition is organizing opposition to tax cuts. Other groups and coalitions are meeting, planning and organizing.

Action Needed Right Away on Budget and Farm Bill

Why are national groups making the defense of key programs an urgent priority? 1) Because important decisions in the FY 2006 budget debate could begin in February 2005, even if votes do not occur until March or April. 2) Because influential policy makers and opinion leaders have already been vocal about plans to trim the federal deficit by making cuts and/or changes to the structure of federal entitlement programs.

The “tea leaves” predictions include:

--statements by President Bush and incoming Senate Budget Committee Chair Gregg (R-NH) about halving the federal budget deficit in five years;
--active speculation that budget savings might be sought by “reopening” the 2002 Farm Bill (where agriculture funding and Food Stamp funding are at risk);
--a five-state food stamp block grant proposal included in the House version of the legislation to reauthorize the Temporary Assistance for Needy Families (TANF) Program;
--discussion of structural changes to “cap” spending in almost all entitlement programs; and
--concern that the FY 2006 Budget Resolution adopted in early spring 2005 might instruct committees responsible for programs to find specific levels of savings within programs under their jurisdiction. This same process led to deep cuts in the food stamp and child nutrition programs in 1996.

The latter process, known as “budget reconciliation,” forces authorizing committees, like the Senate Agriculture Committee and the House Agriculture Committee, to find budget savings from programs within their jurisdiction. Budget reconciliation also moves on a “fast track” in the Senate. Unlike regular bills, a budget reconciliation bill is not subject to filibuster and can move easily with only 51 votes (not the 60 normally needed to cut off Senate floor debate).

Human needs advocates are not alone in sensing the serious budget threats ahead. Major farm groups are already raising concerns. This both underscores the seriousness of the situation and suggests opportunities for coalition building. For example, in 2003, when House Budget Committee Chair Nussle (R-IA) proposed deep cuts to programs, the farm groups and nutrition advocates successfully joined in opposition and made a common plea to Congress not to reopen the 2002 Farm Bill.

Action Needed: Educate Members and Opinion Leaders About Nutrition Programs Now

There are several steps that anti-hunger advocates can take over the next three to four weeks to better position the federal nutrition programs for legislative battles in 2005.

1) Lay the groundwork for coalition activities in your state or locality around the FY 2006 budget. Contact allies from the nutrition community, emergency feeding sites, faith-based groups, seniors’ organizations, children’s groups, immigrant groups, farmers, agriculture producers, retail stores, unions, state and local elected officials, food stamp and child nutrition administrators; health and other groups. Alert potential allies that the debate over the FY 2006 budget could threaten the structure and funding for nutrition and other human needs and health programs; discuss allies’ awareness of and/or plans for FY 2006 budget advocacy; identify opportunities for collaboration on events and messages in 2005; seek their commitments of support. Some of these local allies will have already heard bout these problems form their national associations, but many will not have heard yet.

2) Invite returning and newly elected Members of Congress to visit program sites to learn about hunger and positive solutions. Possibilities range from food stamp outreach prescreening venues and emergency feeding sites, to schools offering breakfast, lunch or afterschool snacks, WIC clinics, and child care centers/ homes serving food through the Child and Adult Care Food Program.

3) Incorporate messages about the important contributions that the Food Stamp and other federal nutrition programs make in addressing hunger, serving local families, and boosting local economies into your holiday season anti-hunger events and media work. Information about a recent model event held by the New York City Coalition Against Hunger (NYCCAH) is available at http://www.nyccah.org/media/SurveyPressRelease2004.doc

4) Get statements on record about the importance of the federal nutrition programs from your local elected officials, food retailers, food bank leaders, educators, health professionals, and other stakeholders.

5) Collect stories that put a human face on hunger and nutrition programs.

6) Analyze hunger and nutrition program data regarding local need and impact of federal program spending on residents and the economy.

7) In any contacts with Members of Congress, urge that they protect the structure and funding for nutrition programs on any regular appropriations/authorization bill and in the budget resolution, as well as on any special budget reconciliation or spending cap measure.