WASHINGTON, DC – Today, the President unveiled his budget proposal for fiscal year 2007.  Congresswoman Nita Lowey (D-Westchester/Rockland) said that the budget raises serious concerns about programs that are important to New Yorkers.

“When I talk to residents of the 18^th Congressional District, I continually hear about the need for more federal support for important priorities.  Schools, hospitals and first responders rely on federal assistance, yet this budget doesn’t meet those needs.  Instead, it will increase the burden on local governments, resulting in higher taxes for New Yorkers.

Lowey outlined several areas of concerns in the budget:

Health Care

·    The Preventive Health Services Block Grant provided almost $9 million to New York just last year.  This funding was used for diverse initiatives such as the Healthy Heart program, diabetes coalitions, child lead poisoning prevention, asthma prevention, and rape crisis services.  This year, the program has been slated for elimination.

• Medicare has been targeted fro $36 billion in cuts over the next five years.  Hospitals, skilled nursing facilities, and other health care providers will receive lower reimbursements under the budget.

“In Westchester and Rockland Counties, hospitals are already struggling in the face of funding shortfalls,” said Lowey.  “These cuts are going to exacerbate existing problems and hurt patients throughout our area.  The President instead should have re-evaluated his expensive Medicare prescription drug program and sought to hold down prices by allowing the reimportation of drugs and bulk pricing negotiations with drug companies.”

Education

• The 21^st Century Afterschool Learning Centers Program has been cut by $10 million despite a recent report’s finding that 25 states, including New York, will not be able to create any new afterschool programs without increased funds. 
• Programs that help prepare students for college, such as TRIO and GEAR UP, are also hit hard in the President’s budget.  Funding for TRIO is cut by more than half from $828 million to $380 million and GEAR UP has been completely eliminated.

Homeland Security

• While the budget proposes increases to the Urban Area Security Initiative and the State Homeland Security Grant Program, the elimination of the Law Enforcement Terrorism Prevention Program will result in an overall decrease in homeland security funds available to state and local governments.
• The widely popular FIRE Grant program will be cut almost in half, from $575 million in FY06 to $293 million in FY07. 

“Over the last three years, 16 fire departments in the 18^th Congressional District have received more than $1.4 million in fire grants,” said Lowey.  “This is just one example of critical community support that will be difficult to maintain in the face of huge cuts.” 

“Unfortunately, this bill of goods is being sold to the public as a way to lower the skyrocketing deficits accumulated under this Administration.  However, even these drastic cuts will do nothing to improve our nation’s fiscal health.  In FY06, the budget deficit will reach a record high of $423 billion, and the new budget’s projected $354 billion deficit does not include any spending for military operations in Iraq and Afghanistan,” said Lowey.  “Under this budget, vital programs will be cut, local governments will be under even greater strain, and we’ll still have record deficits.  As a Member of the Appropriations Committee, I’m going to work with my colleagues to create a budget that will meet important community needs while putting our nation back on the fiscally responsible path.”