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The Federal Budget: A matter of priorities

By Isabel M. Estrada Portales
05/06/2005

By a vote along party lines, the House and Senate passed last week the federal budget for fiscal year 2006 which resembles pretty closely the one proposed by the Administration of $2.6 trillion dollars. "

“Overall, this budget will have a very negative impact on the Hispanic community”, says Charles Pamez, Director of Development for the League of United Latin American Citizens (LULAC).
“Especially by eliminating such essential education programs as GEAR UP and TRIO, which target very needy communities, the gap is only going to get bigger.

These are programs really focused on the Hispanic youth. We are working really hard to get them back.”
Although the budget resolution is non-binding, it is regard as a guideline when the legislators start working on specific appropriations. Democrats opposed the spending outline because they see it as a reflection of the Administration’s wrongheaded priorities; while Republicans claim it would help reduce federal deficits.

The vote was 214-211 in the House and 52-47 in the Senate. President George W. Bush said in a statement that he applauds “the House for passing a budget that protects America, promotes economic growth, supports our priorities, and keeps us on track to cut the deficit in half by 2009. It closely follows my budget proposal and reflects our shared commitment to be wise with the people’s money and restrain spending in Washington, D.C.”

However, Democrats like New York Senator Hillary Clinton found the budget “unconscionable” because of its misplaced priorities, and because it cuts lifesaving programs for the poor while giving tax cuts to the rich.

Robert Greenstein, Executive Director of the Center on Budget and Policy Priorities, said that while the new budget cuts domestic programs in the name of deficit reduction, it includes more tax cuts heavily favoring those with the highest incomes, as well as further increases in defense spending.

“As a result, deficits would increase by $168 billion over the next five years, compared with the deficits the Congressional Budget Office says will occur if there are no changes in current policies,” said Greenstein. “This budget digs the deficit hole deeper and passes more debt on to future generations, while using budget cuts aimed at the poor and vulnerable to help finance tax breaks for the well-off and the well-connected.”

Along with LULAC, other Hispanic organizations such as Hispanic Association of Colleges and Universities (HACU), and the National Council of La Raza (NCLR) expressed disapproval of the budget.

“For Hispanic Americans, this budget comes at a critical time when more rather than less investment is needed,” said Eric Rodriguez, Director of Policy Analysis Center, for NCLR. “In spite of what some may say, lawmakers have options.

A vote for a budget that cuts programs for education, health, and housing programs that serve needy families is a choice and preference, not a necessity. There are other ways to balance the budget and Congress must look in another direction.