Federal Budget Close-Up

Washington Brief February 20, 2008

Advancing progressive policy change since 1997

Federal budget close-up The more you know, the worse it gets According to a new analysis released today by the Center on Budget and Policy Priorities in Washington, New Jersey would, under the federal budget proposed by President Bush, lose an estimated $274 million from the 2008 level in federal support for a broad range of critical programs, even as large tax cuts for wealthy households would be extended. A budget that says yes to more tax cuts for millionaires and no to adequately investing in clean water, early education for children or cancer research is a budget full of misguided priorities. It would shift millions of dollars in costs to New Jersey at a time when the state already projects a $3 billion shortfall in the state budget. CBPP's analysis shows that cuts in the President's budget would affect a broad range of services, including many that have already absorbed sizable cuts in recent years. For example: Continue recent year cuts in K-12 education, even as the state must meet federal No Child Left Behind mandates. Nationally, funding would be almost 10 percent lower (all figures are adjusted for inflation) in 2009 than in 2004, when the federal government reversed course and began reducing its investment in K-12 education. New Jersey would receive $77.1 million less in 2009 than in 2004. Funding for New Jersey vocational and adult education programs would also be cut by $28 million compared to last year. Cut New Jersey's child care funding by $700,000 marking the eighth straight year of frozen or reduced funding. New Jersey's funding has fallen by $6.7 million over that time. Continue recent year cuts in Head Start funding. Head Start programs in New Jersey would get $17.3 million less in 2009 than in 2002. Cut New Jersey's low-income energy assistance funding by $27.6 million. This is equivalent to the cost of providing assistance to 39,700 New Jersey households. The Low-Income Home Energy Assistance Program (LIHEAP) helps vulnerable households to pay their home heating and air conditioning bills. The increase in energy prices over the past few years has made LIHEAP more important than ever. Cut New Jersey's funding for clean and safe drinking water by $6 million. Some of the biggest cuts in the President's budget would come in environmental programs, such as grants from the Environmental Protection Agency (EPA) to help states and localities fund sewage treatment plans, wastewater treatment, and other water clean-up projects. These cuts come on top of significant cuts in recent years. New Jersey would receive $$44.6 million less for clean and safe drinking water in 2009 than in 2001. Cut New Jersey's community development funding by $19.5 million. The Community Development Block Grant (CDBG) helps fund a broad range of community development activities states, including housing and homelessness programs, improvements to public facilities such as senior and youth centers, and economic development. New Jersey would receive $65.9 million less for this program in 2009 than it did in 2001. Cut New Jersey's funding for repairing, modernizing, and replacing public housing units by $16.1 million. Nationally, funding has already been cut by nearly one-third since 2001, and New Jersey's share of that funding has fallen by $57.5 million over that period. Cut New Jersey's education and training programs for adults by $3.1 million, dislocated workers by $5.2 million, and youth by $1.9 million. Nationally, each of these programs has been cut by between 29 and 39 percent since 2001, and New Jersey has lost $9.2 million, $13.2 million, and $9.7 million respectively. Is this information useful to you?  Then please consider a financial contribution today.  As a nonprofit 501(c)(3) organization, New Jersey Policy Perspective relies on donations to fund our reports and publications, public outreach programs, and other initiatives.  Just use this link: Make a tax-deductible donation to NJPP