|
March 3, 2008
|
The Honorable Harry Reid
Majority Leader
United States Senate
S-221, U.S. Capitol
Washington, D.C. 20510 |
The Honorable Mitch McConnell
Minority Leader
United States Senate
S-230, U.S. Capitol
Washington, D.C. 20510 |
|
Honorable Kent Conrad
Chairman, Budget Committee
United States Senate
Room 530 - Hart Senate Office Building
Washington, DC 20510 |
Honorable Judd Gregg
Ranking Member, Budget Committee
United States Senate
Room 393 - Russell Senate Office Building
Washington, DC 20510 |
RE: BUDGET RESOLUTION RECOMMENDATIONS
Dear Senators Reid, McConnell, Conrad, and Gregg:
As the Senate Budget Committee develops its FY 2009 Budget Resolution, the National Conference of State Legislatures (NCSL) urges you to take into account the slowing economy, means for stimulating economic activity and the unique fiscal situations that states are experiencing as you formulate the FY 2009 resolution.
In Dec. 2007, NCSL reported that many states faced budget challenges due to the slowing national economy in FY 2008 and FY 2009. Recent reports by the governors and state budget officers confirmed these budget challenges. A slowing national economy, under-funded federal mandates, federal tax changes such as the increased bonus depreciation in recently-passed economic stimulus legislation, and a host of potential regulatory cost shifts, particularly through the Medicaid program, may exacerbate the states fiscal challenges. It may easily compel some states to take steps that are counterproductive to economic recovery in order to ensure balanced budgets, such as a tax increase or cuts to essential projects as critical infrastructure or education.
We respectfully request that the terms of your FY 2009 budget resolution not worsen our fiscal conditions. In fact, there are several steps Congress can take to provide protection from cost shifts, adequately fund state-federal partnerships and supplement our collective public policy efforts through the FY 2009 budget resolution and/or a second stimulus package. In this regard, NCSL recommends the following:
* Medicaid Program Funding. A freeze or temporary increase in federal matching payments for Medicaid to assist people who lose health care coverage during the economic downturn and to complement any support the Congress may provide through extended and increased unemployment benefits.
* Medicaid Regulations. A number of pending Medicaid regulations issued by the Centers for Medicare and Medicaid would shift up to $13 billion in federal costs to states. We urge Congress to delay the implementation of these regulations in order that coverage and services continue and further review be carried out.
* Real ID. NCSL recommends $1 billion in immediate federal funding for the initial implementation year, thus avoiding the creation of yet another unfunded federal mandate.
The Department of Homeland Security recently issued regulations to implement the Real ID, estimating it will cost states $4 billion to comply with the requirements under the Act.
* Infrastructure. Additional investments in transportation, waste water and drinking water projects would quickly boost economic growth, address looming trust fund shortfalls and address environmental and health protection needs that have been seriously underfunded.
* Food Stamps. Unemployment Benefits. Low Income Home Energy Assistance. Temporary increases in Food Stamp benefits for households already eligible for and receiving such benefits; temporary extension of unemployment benefits to eligible individuals; and supplemental heating assistance for low-income families are all proven means for addressing problems generated by a weakened economy.
* Child Support Enforcement. Child support payments made by non-custodial parents go directly to meet the basic needs of families and children, so they are quickly circulated into the economy. Federal funding is critical to helping these payments be efficiently and consistently collected. Rescinding the Deficit Reduction Act (109-171) provision that prohibits states from using incentive payments to draw down federal funds will assist states with collections of child support payments and draw down federal funds that will assist states with collections of child support payments , while providing immediate assistance to working families in an economic downturn. The child support program is also incredibly cost effective – for every dollar spent in government funds, $4.58 is collected on behalf of working families.
* Discretionary Grants. Because each state will likely face different fiscal challenges in FY 2008 and FY 2009, Congress should consider providing states with funds for one-time discretionary grant assistance and the flexibility to address their fiscal concerns. In addition, discretionary grant funds help reduce shortfalls in state-federal partnerships.
* Sales Tax Deductibility. An extension of taxpayer authority to deduct their state and local sales taxes when completing their federal tax forms is an important option for taxpayers residing in states that do not impose personal income taxes and are reliant on sales tax revenue to carry out their responsibilities.
* Justice Assistance Grants. NCSL recommends that Congress restore funding for the Byrne Justice Assistance Grants to their FY 2007 level in order to continue key law enforcement functions that have been compromised by the severe cuts experienced with the FY 2008 appropriations level.
NCSL fully understands the challenges of crafting a budget resolution and carrying out an appropriations process that is fiscally sound. State legislators confront the same challenges each year. Our membership is fully prepared to work with you on each of the above recommendations and to strengthen the intergovernmental partnership that marks so many programs for which both levels of government are responsible. For additional assistance and information, please have your staff contact Molly Ramsdell (202-624-3584; molly.ramsdell@ncsl.org) or Michael Bird (202-624-8686; michael.bird@ncsl.org) in NCSL’s Washington, D.C. office.
Sincerely,
|
|
|
|
Representative Donna Stone
Delaware House of Representatives
President, NCSL |
Representative Joe Hackney
North Carolina House of Representatives
President-Elect, NCSL |
|
|
|
|
Senator Don Balfour
Georgia Senate
Vice President, NCSL |
Senator Leticia Van de Putte
Texas Senate
Immediate Past President, NCSL |
|
