Washington, DC - As the Congress begins the debate on the FY’08 budget this week, the 71-member Congressional Progressive Caucus (CPC), led by Congresswomen Lynn Woolsey (D-CA) and Barbara Lee (D-CA), today introduced the “Peace and Security Budget,” a $2.8 trillion alternative budget proposal that balances the budget by 2010.  The proposal - which achieves a balanced budget a full year ahead of other Democratic proposals, and two years before President Bush’s - combines fiscal restraint with the Progressive Caucus’ commitment to meeting the basic human needs of all Americans and bolstering homeland security.

"The federal budget is more than a blinding series of numbers, charts and tables.  It is an expression of our national values," Woolsey said. "As we begin this critical debate about the budget for fiscal year 2008, the Progressive Caucus believes it’s time to reorder our spending priorities.  It’s time to challenge some of the budgetary sacred cows and the entrenched interests that perpetuate them.

While proving to be the most fiscally responsible of the proposed budgets, the CPC budget is designed to strengthen the nation’s security, while investing more in a broad range of urgent domestic needs such as healthcare, education and energy independence.  Among other highlights (SEE SHEET BELOW) it would fully fund the S-Chip Program as a down payment toward universal health care coverage, ensure mental and physical care to all veterans as an entitlement, fully fund the No Child Left Behind program, and provide the resources needed for immediate, cost-effective steps towards the development of renewable energy.

The proposed expenditure increases are covered by a renewed commitment to tax fairness and fiscal responsibility.  Included in their proposal is a commitment to roll back tax cuts for the top 1 percent of Americans, crack down on corporate welfare (such as special tax breaks for the oil and gas industry), close the tax gap, and curb waste, fraud and abuse in the Department of Defense.

“We need to overturn the notion that the pouring money into weapons systems that were designed to fight the Soviet Union makes our nation safer, especially when it means shortchanging the kind of preventive security solutions that are critical to combating global terrorism,” said Lee.

The CPC budget outlines an alternative to preemptive warfare as a national security strategy and calls for a thorough reevaluation of defense spending, eliminating costly and outdated weapons systems and increasing funds for preventive security measures.  The proposal saves $60 billion annually by eliminating funds for Cold War era weapons, like the unproven ballistic missile defense system, and reducing the nuclear stockpile from 10,000 warheads to 1,000.  While eliminating waste, the budget ensures continued U.S. military supremacy, as the CPC proposed-military budget of $395 billion is still larger than the military budgets of China, Russia, UK, France, Japan, Germany and Saudi Arabia combined ($383.7 billion).

As the attached sheet shows, the CPC budget reallocates the cuts in military spending by funding preventive security measures like renewed nuclear nonproliferation efforts, increased diplomatic capacity, and more development assistance, which are all aimed at addressing the root causes of regional instability and violence.

The CPC budget is rooted in the principles outlined in the Common Sense Budget Act (CSBA), a bill introduced by Woolsey and Lee (H.R. 1702) and supported by organizations like Business Leaders for Sensible Priorities, that offers a blueprint for a making a recommitment to domestic spending priorities and reevaluating our approach to defense and security issues.

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Benchmarks and Top Twelve Highlights for FY08-17 Progressive Caucus Alternative Budget

Note: This document works from the Congressional Budget Office baseline numbers, and is projected over a 10-year budget timeline.

BENCHMARKS:

(1) Progressive Caucus Alternative Budget provides at least $450 billion for domestic, non-military discretionary spending; and

(2) Provides at most $412.7 billion as sufficient defense spending level beneath President Bush’s request or cut of $68.7 billion below the Bush request.

TOP TWELVE HIGHLIGHTS:

· Iraq - projects complete U.S. military redeployment out of Iraq during 2007- savings of at least $187 billion in the next two years;

· Target waste, fraud, and abuse, starting with Pentagon savings - projects enactment of the Common Sense Budget Act, which would save at least $60 billion/year on largely obsolete Cold War weapons systems plus billions more is waste, fraud, and abuse in DOD spending identified by the nonpartisan Government Accounting Office (GAO)- savings of at least $600 billion over ten years;

· Repeal of Bush tax cuts for the top 1% of taxpayers - due to expire in 2010 regardless and beyond - savings of at least $348 billion;

· Crackdown on corporate welfare - projects elimination of various corporate tax loopholes such as deductibility of advertising for imaging purposes and special tax breaks for oil and gas industry and other extraction industries;

· SMART Security Alternative to Preemption Doctrine - shifts some spending and increases other non-military spending to fight root causes of terrorism - 21st century diplomacy, meeting basic human needs (e.g. HIV/AIDS/TB, universal basic education for all);

· Global Warming and Energy Independence - funding for immediate, cost-effective steps to redress global warming and the rapid acceleration of renewable energy development;

· Education for All - fully fund NCLB and IDEA and improve Teacher Corps and job training;

· Medicare for All - affordable, accessible, quality health care for all Americans

· Guaranteed Veterans’ Health Care - ensure whatever federal funding is needed to provide health care (including mental health care) for All America’s veterans (including but not limited to veterans of the Iraq and Afghanistan military operations;

· Fair Shake for Middle-Class - increase funding to protect fundamental worker rights, enforce fair credit and lending practices, and promote livable wages and safe workplaces;

· Renew the Social Contract and 21st Century Safety Net - substantially increase funding for decent affordable housing, anti-hunger programs, and more quality child care; and

· Rebuild America’s Communities - substantially increase funding for Community Development Block Grants, community policing, and priority clean-up of leaking underground storage tanks that threaten the drinking water of nearly half of all Americans - a down payment on the implementation of other urgently needed environmental justice programs.