Washington, D.C. - U.S. Senator Mark Dayton today sharply criticized the President’s FY2007 budget proposal, which includes billions in funding cuts to education, local law enforcement, rural healthcare, housing assistance, Medicare, Medicaid, and veterans’ services. The $2.77 trillion budget eliminates and cuts more than 140 government programs, while extending tax cuts past their 2010 expiration dates.

“It is more of the same from this Administration—wealthy Americans and special interests win, at the expense of students, seniors, farmers, and veterans," said Dayton.

During his State of the Union address, President Bush applauded the success of his No Child Left Behind (NCLB) education initiative. However, the President’s budget funds the program at $15.4 billion below the federally authorized level. His proposal also includes the elimination of the TRIO and Gear Up programs, which help low-income students prepare for higher education.

The President’s budget also singles out law enforcement, including the elimination of the Byrne grant program, which combats the spread of methamphetamine and other drugs in local communities. In 2005, Minnesota received $7 million from the program to fund 21 drug task forces throughout the state. The COPS hiring program, used by local law enforcement to hire new officers, was also eliminated in the President’s proposal.

“As a meth plague continues to sweep the country, the President’s budget gouges critical funding for local law enforcement,” Dayton said. “Without support from the COPS and Byrne programs, many local agencies will not have the resources they need to stop meth cooks and dealers from setting up shop in their neighborhoods.”

Below is an outline of how the President’s budget will hurt Minnesotans.

Education

Provides only $24 billion for No Child Left Behind—40 percent below the federally authorized level of $39.4 billion. Provides only $10.7 billion for the Individuals with Disabilities Education Act—37 percent below the federally authorized level of $16.9 billion. Provides only $12.9 billion for Title I (supplemental education services for disadvantage students)—49 percent below the federally authorized level of $25 billion. In FY07, Minnesota would receive $1.1 million less than in FY06. Eliminates funding for the TRIO and Gear Up programs, which helps prepare low-income students for college. Freezes funding for Pell grants, which help students pay for college, at FY03 level. In Minnesota, the average cost of college tuition has increased 21 percent since 2003. Law enforcement

Eliminates funding for the Byrne grant program. The program received $321.4 million in FY06 and $642.8 million in FY05. Cuts the COPS program to $102 million; eliminates the COPS hiring program. COPS was originally funded at $1.2 billion, to help local law enforcement fight the war on drugs, hire additional officers, and obtain new equipment.

Healthcare

Cuts rural healthcare programs by $94 million from FY06. This includes a $1.4 million cut to 11 rural healthcare training programs in Minnesota. Eliminates the Rural Hospitality Flexibility Grant program. Eighty of Minnesota’s 136 hospitals depend on these grants.

Medicare and Medicaid

Cuts Medicare by $35.89 billion over the next five years. Cuts Medicaid by $16.9 billion over the next five years.

Housing and Community Development

Cuts housing programs by $622 million. Housing programs for people with disabilities are reduced by 50 percent from FY06; housing programs for the elderly are reduced by 25 percent from FY06. Cuts Community Development Block Grants, which are used to build affordable housing, create jobs, and expand businesses in low-income communities, by 20 percent. Agriculture

Creates a new tax on dairy farmers of 3 cents per every 100 pounds of milk produced. In 2004, this tax would have cost Minnesota farmers $2.43 million. Cuts the Milk Income Loss Contract (MILC) program by 5 percent. Since 2002, Minnesota farmers have received $163.6 million from the program. With a 5 percent funding cut, the state would have lost $8.2 million during that time. Cuts all farm commodity payments by 5 percent. LIHEAP

Provides only $1.782 billion for the Low Income Home Energy Assistance Program—65 percent below the federally authorized level of $5.1 billion. Veterans

Provides only a 6 percent increase in funding for veterans’ services, including healthcare. The President’s budget does not consider the enormous increase in the number of veterans returning from Iraq and Afghanistan in need of medical care.

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