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Records of the Office of the Chief of Staff (Clinton Administration)
Jennifer O'Connor's Subject Files
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FOIA Number: 2013-0306-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
Chief of Staff
Series/Staff Member:
Jennifer O'Connor
Subseries:
OA/ID Number:
8148
FolderID:
Folder Title:
AFL-CIO Support
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Position:
S
22
5
6
1
AFL / CEC
support
INTERNATIONAL BROTHERHOOD OF TEAMSTERS
1
William W. Hamilton, Jr.
DIRECTOR
DEPARTMENT OF GOVERNMENT AFFAIRS
25 LOUISIANA AVENUE, N.W.
TEL: (202) 624-6906
WASHINGTON, D.C. 20001
FAX: (202) 624-8973
1
THE WHITE HOUSE
WASHINGTON
December 8, 1995
MEMORANDUM FOR THE PRESIDENT
VICE PRESIDENT
FROM:
DOUG SOSNIK
JENNIFER O'CONNOR
SUBJECT:
AFL-CIO MEDIA AND OUTREACH CAMPAIGN
This week, the AFL-CIO launched a national campaign to "hold Members of Congress
accountable" on the budget. The campaign involves a $800,000 media buy in 22 marginal
Republican districts, a million piece direct mail program, phone calls to the million
households receiving the mail as a follow up, and organizers placed in 55 congressional
districts to coordinate local leafletting, phonebanks, letter writing campaigns and other
organizing activities.
The tv and radio, which began running this week, focus on the Republican cuts in Medicare,
and education, coupled with tax breaks. The ads compare that record with your veto, through
which you "stood up for working families."
Copies of the scripts, the direct mail piece, and the video for the ads is attached.
THE WHITE HOUSE
WASHINGTON
December 8, 1995
MEMORANDUM FOR THE PRESIDENT
VICE PRESIDENT
FROM:
DOUG SOSNIK
JENNIFER O'CONNOR
SUBJECT:
AFL-CIO MEDIA AND OUTREACH CAMPAIGN
This week, the AFL-CIO launched a national campaign to "hold Members of Congress
accountable" on the budget. The campaign involves a $800,000 media buy in 22 marginal
Republican districts, a million piece direct mail program, phone calls to the million
households receiving the mail as a follow up, and organizers placed in 55 congressional
districts to coordinate local leafletting, phonebanks, letter writing campaigns and other
organizing activities.
The tv and radio, which began running this week, focus on the Republican cuts in Medicare,
and education, coupled with tax breaks. The ads compare that record with your veto, through
which you "stood up for working families."
Copies of the scripts, the direct mail piece, and the video for the ads is attached.
AFL-CIO
TV :30
"Familles/CNN"
VIDEO
AUDIO
Nighttime shot of the Capitol.
ON NOVEMBER 20TH, CONGRESS VOTED
Super head shot of Newt.
WITH NEWT GINGRICH AND AGAINST
WORKING FAMILIES.
CG letterbox. Top CG:
November 20, 1995 Bottom
CG: Federal Budget Vote
Elderly woman.
THEY VOTED TO CUT MEDICARE
Bottom CG: Cut Medicare
College grad.
EDUCATION AND COLLEGE LOANS
Bottom CG: Cut Education
Wall Street. Limos.
ALL TO GIVE A HUGE TAX BREAK TO BIG
CORPORATIONS AND THE RICH.
Bottom CG: Tax Breaks for
the Rich.
Full-frame shot of President
BUT PRESIDENT CLINTON SAID NO. HE
Clinton signing veto at desk.
STOOD UP FOR WORKING FAMILIES
Gingrich and Dole.
AND SENT THE GINGRICH BUDGET BACK
TO CONGRESS.
Back to letterbox. Flag
NOW, IT'S UP TO US TO GET INVOLVED
waving. Super left: Elderly
AND SPEAK OUT.
man mailing a letter. Super
right: Woman calling
Congress.
CG: Call Congress
1-800-765-4440
Capitol Dome.
CALL CONGRESS.
Family In front hallway.
TELL THEM: THIS TIME, DON'T VOTE FOR
THE WEALTHY SPECIAL INTERESTS.
Add disclaimer.
THIS TIME, VOTE FOR AMERICA'S
WORKING FAMILIES.
AFL-CIO
TV :30
"Families/Dickey"
FINAL SCRIPT
VIDEO
AUDIO
Nighttime shot of the Capitol.
ON NOVEMBER 20TH, OUR CONGRESSMAN
Super head shot of Newt.
VOTED WITH NEWT GINGRICH AND
AGAINST WORKING FAMILIES.
CG letterbox. Top CG: Rep.
Jay Dickey Bottom CG:
Federal Budget Vote
Elderly woman.
HE VOTED TO CUT MEDICARE
Bottom CG: Cut Medicare
College grad.
EDUCATION AND COLLEGE LOANS
Bottom CG: Cut Education
Wall Street. Limos.
ALL TO GIVE A HUGE TAX BREAK TO BIG
CORPORATIONS AND THE RICH.
Bottom CG: Tax Breaks for
the Rich.
Full-frame shot of President
BUT PRESIDENT CLINTON SAID NO. HE
Clinton signing veto at desk.
STOOD UP FOR WORKING FAMILIES
Gingrich and Dole.
AND SENT THE GINGRICH BUDGET BACK
TO CONGRESS.
Back to letterbox. Flag
NOW, IT'S UP TO US TO GET INVOLVED
waving. Super left: Man
AND SPEAK OUT.
mailing a letter. Super right:
Woman calling Congress.
CG: Call Rep. Jay Dickey
1-800-765-4440
Add disclaimer.
Capitol Dome.
LET'S TELL CONGRESSMAN DICKEY
Family in front hallway.
THIS TIME, DON'T VOTE FOR THE WEALTHY
SPECIAL INTERESTS.
THIS TIME, VOTE FOR AMERICA'S
WORKING FAMILIES.
AFL-CIO
Radio :60
"Families/Torkildsen"
FINAL SCRIPT
AUDIO
ON NOVEMBER 20TH, CONGRESSMAN
PETER TORKILDSEN VOTED WITH NEWT
GINGRICH AND AGAINST AMERICA'S
WORKING FAMILIES.
HE VOTED TO CUT MEDICARE FOR OUR
PARENTS AND GRANDPARENTS..
AND TO CUT EDUCATION AND COLLEGE
LOANS FOR MIDDLE-CLASS FAMILIES..
ALL so HE COULD GIVE A 245 BILLION
DOLLAR TAX BREAK TO BIG
CORPORATIONS AND THE RICH.
BUT PRESIDENT CLINTON SAID NO. HE
STOOD UP FOR WORKING FAMILIES AND
SENT THE GINGRICH BUDGET BACK TO
CONGRESS.
NOW, IT'S UP TO US. WE'VE GOT TO GET
INVOLVED AND SPEAK OUT.
CALL CONGRESSMAN TORKILDSEN AT 1-
800-765-4440.
LET'S TELL HIM..
THIS TIME, DON'T VOTE FOR THE WEALTHY
SPECIAL INTERESTS.
THIS TIME, VOTE FOR AMERICA'S
WORKING FAMILIES.
CALL 1-800-765-4440.
JOIN US TODAY.
WE'RE THE MEN AND WOMEN OF THE AFL-
CIO - LEADING THE FIGHT FOR AMERICA'S
WORKING FAMILIES.
AND THAT'S WHY THE AFL-CIO PAID FOR
THIS MESSAGE.
AFL-CIO :60 Television Commercial Medicare #1
VIDEO
AUDIO
OPEN WITH SHOT OF SIGN,
(dramatic doc. music in, under)
PAN TO SHOW PODIUM
SUPER "BOSTON September 18"
ANNCR(VO): When Congress refused
DIS TO GROUP
to hold hearings on Medicare and
DIS TO FACES
Medicaid, Save Our Security and
the AFL-CIO sponsored public hearings
in seven major cities
(upfulls)
MEDIUM SHOT OF BOSTON #1:
ALMOND: Senior citizens shouldn't be
having to choose between whether they
can eat, whether they can have heat in
their homes, or whether they can buy their
medicine.
MEDIUM SHOT OF BOSTON #2:
THARIAN: The Republican's Medicare
reform means paying higher premiums
with less benefits. Our choice of doctors
and hospitals will be limited, and the
billions in cuts are not to save the
program, but to finance tax cuts for the
rich.
MEDIUM SHOT OF BOSTON #3:
FARMER: You keep up your work down
in Washington, we're going to keep up
ours here in the coalition and we are not
going to quit!
DIS FROM FACES TO FACES
ANNCR (VO): President Clinton heard us:
INTO BLUE SCREEN, SUPER:
that's why he said NO to big cuts in
Medicare and Medicaid. Now let's make
Call Your Member of Congress
sure Congress gets the message.
1-800-765-4440
Paid for by the Men and Women
of the AFL-CIO
AFL-CIO :60 Television Commercial Medicare #2
VIDEO
AUDIO
OPEN WITH ECU OF BUTTON
(dramatic doc. music in, under)
DIS TO WIDE SHOT, PODIUM
SUPER "MIAMI October 16"
ANNCR (VO): When Congress refused
DIS TO FACE, HANDS
to hold hearings on Medicare and
DIS TO BUTTON
Medicaid, Save Our Security and
the AFL-CIO sponsored public hearings
in seven major cities
(upfulls)
MEDIUM SHOT OF MIAMI #1:
HARPER: I think it is outrageous that the
Congress is talking about cutting the
Medicare and the Medicaid and the other
benefits for the people.
MEDIUM SHOT OF MIAMI #2:
SAYER: The people here are smart.
They understand what's happening.
MEDIUM SHOT OF MIAMI #3:
PURDUE: I also am very concerned that
they try so hard to keep quiet what they're
doing to Medicare.
MEDIUM SHOT OF MIAMI #4:
PEREZ: I came to the United States in
1954. What a country we had at that
time. What happened to America?
WIDE SHOT OF MIAMI #5:
MOORE: Know how to talk to God
beside talking to the President. Let us talk
to God and ask him to come on in here
and intervene with us
DIS FROM FACES TO FACES
ANNCR (VO): President Clinton heard us:
INTO BLUE SCREEN, SUPER:
that's why he said NO to big cuts in
Medicare and Medicaid. Now let's make
Call Your Member of Congress
sure Congress gets the message.
1-800-765-4440
Paid for by the men and women
of the AFL-CIO
AFL-CIO Targeted Congressional Districts
Reconciliation Bill Direct Mail and Media List
December 1995
AR - 04 - Jay Dickey *
OH - 06 - Frank Cremeans *
CA - 01 - Frank Riggs
*
OH - 10 - Martin Hoke *
CA - 22 - Andrea Seastrand
*
OH - 12 - John Kasich
CT - 05 - Gary Franks
OH - 16 - Ralph Regula
CT - 06 - Nancy Johnson
OH - 18 - Bob Ney
FL - 09 - Mike Bilirakis
OH - 19 - Steve LaTourette
FL - 10 - Bill Young
OK - 02 - Tom Coburn
FL - 22 - Clay Shaw
OR - 02 - Wes Cooley
GA - 04 - John Linder
OR - 05 - Jim Bunn
*
GA - 07 - Bob Barr
PA - 05 - Bill Clinger
IA - 04 - Greg Ganske
*
PA - 13 - Jon Fox
ID- 01 - Helen Chenoweth
*
PA - 21 - Phil English
IL - 05 - Michael Flanagan
*
SC - 03 - Lindsey Graham
IL - 11 - Jerry Weller *
TN - 03 - Zach Wamp
IL - 13 - Harris Fawell
TN - 04 - Van Hilleary
*
IL - 18 - Ray LaHood
TX - 09 - Steve Stockman
*
IN - 08 - John Hostettler *
TX - 14 - Greg Laughlin
KY - 01 - Ed Whitfield *
UT - 02 - Enid Waldholtz
LA - 03 - Billy Tauzin
WA - 01 - Rick White *
ME - 01 - Jim Longley
*
WA - 02 - Jack Metcalf
MD - 02 - Robert Ehrlich
*
WA - 09 - Randy Tate *
MA - 03 - Peter Blute
WI - 01 - Mark Neumann
MA - 06 - Peter Torkildsen
*
WY - AL - Barbara Cubin
MI - 04 - Dave Camp
MI - 08 - Dick Chrysler *
NC - 04 - Fred Heineman
*
NC - 10 - Cass Ballenger
NJ-08 - Bill Martini
NV-01 - John Ensign
*
NY - 04 - Dan Frisa
NY - 13 - Susan Molinari
NY-27 - Bill Paxon
* Media targets
American Federation of Labor and Congress of Industrial Organizations
EXECUTIVE COUNCIL
AMERICAN FEDERATION OF LABOR
815 Sixteenth Street, N.W.
JOHN J. SWEENEY
RICHARD L. TRUMKA
LINDA CHAVEZ-THOMPSON
Washington, D.C 20006
PRESIDENT
SECRETARY-TREASURER
EXECUTIVE VICE PRESIDENT
(202) 637-5000
Albert Shanker
Edward T. Hanley
Wayne E. Glenn
James E. Hatfield
Vincent R Sombrotto
Gerald W. McEntee
AFL
CIO
William H. Bywater
Marvin J. Boede
CONGRESS
John T Joyce
Morton Bahr
Robert A Georgine
Gene Upshaw
ORGANIZATION
Jay Mazur
Lenore Miller
John J Barry
Moe Biller
George J. Kourpias
John N Sturdivant
Frank Hanley
James J. Norton
OF
Michael Sacco
Ron Carey
Arthur A. Coia
Frank Hurt
INDUS
Gloria T. Johnson
TRIAL
Douglas H. Dority
George F Becker
Stephen P Yokich
J. Randolph Babbitt
Clayola Brown
Richard W. Cordtz
M.A. "Mac" Fleming
Carolyn Forrest
Pat Friend
Michael Goodwin
Joe L. Greene
Sonny Hall
Sumi Haru
Carroll Haynes
James LaSala
William Lucy
Leon Lynch
Doug McCarron
Andrew McKenzie
AL. "Mike" Monroe
Arthur Moore
Arturo S Rodriguez
Robert A. Scardelletti
Robert E. Wages
Jake West
Alfred K Whitehead
Statement by AFL-CIO President John J. Sweeney
News Conference to Release Media Campaign on Federal Budget
December 5. 1995
The budget debate going on here in Washington right now is playing out as one of the
defining moments in recent history.
The Republican Congress' zeal to cut education. Medicare and Medicaid -- programs that
give working families what little hope they have for economic security -- is frankly hard to
figure.
But no more so than their insistence on tax breaks for the wealthy and corporate
special interests at a time when working families live in frustration and desperation.
This perspective isn't just a view held in Washington: all across the country, polls show,
Americans have rejected Newt Gingrich's budget-cut-for-tax-trade-give-away. And they have
flatly rejected the notion of a budget compromise for the sake of compromise.
In a poll conducted by Peter Hart Research two weeks ago, Americans in every age
group, educational category and region of the country said President Clinton should reject a
budget that cuts deeply into Medicare, Medicaid and student loans. And they believe Congress is
promoting the wrong kind of change by cutting into key working family programs. You can see
from the chart here how broadly Americans support this view.
In this environment, the we decided it was critical to hold members of Congress
individually and jointly accountable for the choices they are making -- and to demand that they
vote with working families, and against special interests.
When we ran for office, we vowed to create a strong new voice for ordinary workers, and
to build a powerful grassroots movement of American working families.
Today we are launching a million-dollar, multi-layered campaign to do just that.
This new campaign, I might add, follows an effort that has already yielded 82,000 calls to
Congress from mid-October to mid-November -- and almost 270,000 calls since mid-February.
We have also generated hundreds of thousands of pieces of mail to Congress and the
President.
The campaign we are launching today includes:
1 million pieces of direct mail to active union members and retirees in 55 targeted
congressional districts, asking recipients to call their representatives in Congress, and
send a postcard to President Clinton asking him to stand firm on behalf of working
families;
Phone banking to half a million households to follow up on the direct mail;
Local activities -- phone banking, leafleting. rallies -- in the 55 targeted districts to
expose members' votes against working families;
Local television and radio advertising in 22 targeted districts that hold members directly
accountable;
And national television advertising using two different TV spots -- one with a message
about the budget votes by Congress, and two separate spots containing testimony from
hearings we sponsored about Medicare this summer and fall.
The national television schedules begin airing today -- and a local D.C. spot on Medicare
has been running since the end of last week.
With these ads and through our continuing work in communities, we are serving notice to
every member of Congress that we are going to hold them accountable for their attacks on our
families.
We are saying in a voice that we hope is amplified from city to city that these are NOT
the changes people voted for in 1994.
Working families are insulted and our lives will be deeply hurt -- by the attacks on
Medicare, education and other programs that have provided entry to the middle class for so many
Americans.
And it's not just us but our entire country -- that will suffer if the Republicans prevail.
I want to show you the spots now, and after that we'll take your questions.
NEW POLL FINDS AMERICANS REJECT REPUBLICAN AGENDA,
SIDE WITH PRESIDENT CLINTON, DEMOCRATS ON BUDGET
A new poll by Peter D. Hart Research Associates finds that a majority of Americans,
58 percent, believe the Republican budget goes too far and would bring about the "wrong
kind of change." The survey was conducted Nov. 15-19 and included a representative cross
section of 801 members of the general public. Among the key findings:
*
Americans in every age group, educational category and region of the country are
now more likely to trust President Clinton and the Democrats over the Republicans on
budget issues. Women, especially, favor the Clinton/Democratic position by a 53-28 percent
margin.
-- 48 percent agree with the position of President Clinton while 34 percent support
the Republicans in Congress.
-- By a 58-36 percent margin, Americans believe that Republicans are promoting the
wrong kind of change by cutting such valuable programs as Medicare, Medicaid and student
loans.
Even among those traditionally inclined to support the Republican agenda, the
GOP has lost ground, with these constituencies all opposing the Republican effort:
Southerners, 55-42 percent; men, 53-41 percent; and higher-income voters, 54-43 percent.
*
Americans are looking for a reasonable settlement to the budget battle but they
don't want compromise at any price and believe President Clinton should stand firm against
a number of specific provisions.
-- 86 percent say the president should reject a budget that includes the GOP
proposal allowing corporations to take money from workers' pension funds to use for other
purposes.
-- 81 percent say Clinton should reject a budget that includes the Republican
proposal for large, new tax breaks for the wealthy and big corporations. Even Republicans
say this, by a 63-27 percent margin.
-- 73 percent say President Clinton should reject a budget that includes major cuts
in Medicaid that would make it more difficult for families to afford nursing home care.
-- 71 percent say the president should reject a budget that includes major Medicare
cuts that would raise seniors' health care premiums.
*
On education issues, nearly three-fourths believe the president should reject a
budget that cuts the student loan program and reduces federal support for public education.
*
On workplace issues, 65 percent want President Clinton to reject a budget that
reduces enforcement of job safety and health protections. A majority of Americans -- both
union members and non-members -- also support the president's stand on striker
replacement and reject Republican proposals to weaken laws against unfair labor practices
by employers.
Peter D. Hart Research Associates Inc.
202/234-5570
Who Benefits from the
Republican Tax Breaks?
$50-75,000
20%
$75-100,000
$0-50,000
13%
19%
$100,000 or more
48%
Source: U.S. Treasury Department, Office of Tax Analysis 11/22/95
afl-cio opeiu #2
REPUBLICAN MEDICAID CUTS, STATE-BY-STATE
Under the current Medicaid program, the Federal government shares with the States
their costs of providing basic health and long-term care services. On average, the Federal
government pays 57 percent of the costs of providing hospital, physician, nursing home,
and other basic services to low-income families, to the frail elderly, and to the disabled.
Under the budget conference agreement, the Medicaid program would be repealed.
The Federal government would no longer share In all of the States' costs for basic health
and long-term care. Instead, Federal payments to the States would be cut by $163 billion,
or 17 percent, over the next 7 years. Federal payments to each State would be limited to
a fixed dollar amount each year - regardless of the State's actual costs of caring for its
vulnerable populations.
Each State would be at financial risk for 100 percent of the costs of health and long-
term care above these fixed Federal dollar amounts, even if the State's additional costs
were the result of increases in caseload due to factors beyond its control, such as
economic downtums or outbreaks of communicable diseases.
By fixing these Federal dollar limits for each State in statute, the Republican bill
distributes the Federal Medicaid cuts among the States. The Republicans have already
adopted four different formulas for distributing these losses: one in the House Commerce
Committee. one in the Senate Finance Committee, one on the House floor, and one on the
Senate floor.
The conference agreement contains yet another formula for distributing losses
among the States. The attached tables illustrate what this formula means for each State.
The first table shows the losses -- "Federal savings' - by State in the fiscal year 2002
alone, and over the entire 7-year period, FY 1996 - FY 2000. The second table compares
the losses each State will experience under the conference agreement to the loss it would
have experienced under the House-passed bill.
Under the conference agreement, almost every State loses Federal funds relative
to what it would receive under current law in order to maintain current levels of
coverage. On average, States lose about 17 percent over the next 7 years.
There is huge variation among the States in the size of their losses over the next
7 years. Some States lose less than 5 percent (Delaware, Kansas, Missouri,
Oregon, and Vermont). Other States lose 25 percent or more (Indiana, Kentucky,
Louisiana, NEW Hampshire, North Carolina, Oklahoma, Washington, West Virginia).
Estimates of the Effects of the Conference Agreement Medicaid Plan on States, 2002 and 1996 - 2002
Formula as of November 16, 1995
(Dollars In Millions, Federal Spending, Fiscal Years)
2002
1996-2002
States
Baseline
Proposed
Federal
Percent
Baseline
Proposed
Federal
Percent
Spending (1)
Spending (2)
Savings
Reduction
Spending (1)
Spending (2)
Savings
Reduction
Total
$176,931
$127,418
($49,513)
-28%
$954,338
$791,146
($163,192)
-17%
Alabama
$2,485
$2,145
($340)
-14%
$13,823
$12,864
($959)
-7%
Alaska
$373
$275
($98)
-26%
$2,001
$1,660
($341)
-17%
Arizona
$2,436
$1,913
($523)
-21%
$12,903
$11,658
($1,244)
-10%
Arkansas
$2,084
$1,430
($655)
-31%
$11,081
$8,574
($2,507)
-23%
California
$17,955
$13,678
($4,278)
-24%
$95,663
$80,310
($15,353)
-16%
Colorado
$1,521
$1,030
($491)
-32%
$8,163
$6,367
($1,796)
-22%
Connecticut
$2,345
$1,688
($657)
-28%
$12,990
$11,094
($1,896)
-15%
Delaware
$323
$285
($38)
-12%
$1,728
$1,720
($8)
0%
District of Columbi
$846
$579
($267)
-32%
$4,511
$3,802
($709)
-16%
Florida
$7,691
$5,680
($2,011)
-26%
$40,720
$33,045
($7,675)
-19%
Georgia
$4,900
$3,301
($1,599)
-33%
$26,050
$20,348
($5,702)
-22%
Hawaii
$508
$373
($135)
-27%
$2,732
$2,450
($281)
-10%
Idaho
$545
$426
($119)
-22%
$2,933
$2,448
($484)
-17%
Illinois
$6,207
$4,684
($1,523)
-25%
$33,242
$29,056
($4,186)
-13%
Indiana
$4,317
$2,589
($1,727)
-40%
$23,100
$16,069
($7,032)
-30%
lowa
$1,440
$1,108
($333)
-23%
$7,807
$6,874
($933)
-12%
Kansas
$1,079
$946
($133)
-12%
$5,962
$5,874
($88)
-1%
Kentucky
$3,455
$2,230
($1,225)
-35%
$18,353
$13,374
($4,979)
-27%
Louisiana
$6,147
$2,909
($3,237)
-53%
$33,991
$18,818
($15,173)
-45%
Maine
$1,092
$801
($291)
-27%
$5,999
$5,264
($735)
-12%
Maryland
$2,532
$1,810
($722)
-29%
$13,478
$11,266
($2,212)
-16%
Massachusetts
$4,717
$3,312
($1,404)
-30%
$25,516
$21,815
($3,701)
-15%
Michigan
$5,992
$4,595
($1,397)
-23%
$32,153
$28,518
($3,635)
-11%
Minnesota
$2,701
$2,070
($631)
-23%
$14,665
$13,602
($1,063)
-7%
Mississippi
$2,342
$1,929
($413)
-18%
$12,640
$11,100
($1,540)
-12%
Missouri
$2,625
$2,484
($141)
-5%
$14,871
$15,338
$467
3%
Montana
$636
$422
($214)
-34%
$3,409
$2,603
($807)
-24%
Nebraska
$822
$542
($280)
-34%
$4,448
$3,662
($785)
-18%
Nevada
$540
$394
($145)
-27%
$2,899
$2,539
($360)
-12%
New Hampshire
$631
$375
($256)
-41%
$3,728
$2,542
($1,186)
-32%
New Jersey
$5,100
$3,294
($1,806)
-35%
$28,038
$21,775
($6,263)
-22%
New Mexico
$1,147
$970
($177)
-15%
$6,066
$5,605
($461)
-8%
New York
$22.034
$14,888
($7,146)
-32%
$119,527
$98,331
($21,196)
-18%
North Carolina
$5,406
$3,432
($1,974)
-37%
$29,014
$21,298
($7,716)
-27%
North Dakota
$457
$320
($137)
-30%
$2,491
$1,985
($506)
-20%
Ohio
$7,508
$5,350
($2,158)
-29%
$40,586
$33,200
($7,386)
-18%
Oklahoma
$2,060
$1,393
($667)
-32%
$11,074
$8,016
($3,058)
-28%
Oregon
$1,649
$1,444
($205)
-12%
$8,884
$8,982
$98
1%
Pennsylvania
$7.102
$5,818
($1,284)
-18%
$38,448
$36,174
($2.273)
-6%
Rhode Island
$1,004
$630
($374)
-37%
$5,465
$4,138
($1,327)
-24%
South Carolina
$2,756
$2,291
($465)
-17%
$15,252
$13,741
($1,511)
-10%
South Dakota
$442
$349
($93)
-21%
$2,380
$2,163
($217)
-9%
Tennessee
$4,587
$3,342
($1,245)
-27%
$24,576
$20,739
($3,838)
-16%
Texas
$11,358
$9,102
($2.257)
-20%
$61,167
$55,273
($5,894)
-10%
Utah
$960
$683
($278)
-29%
$5,128
$4,103
($1,024)
-20%
Vermont
$366
$305
($61)
-17%
$1,982
$1,919
($63)
-3%
Virginia
$2,434
$1,607
($827)
-34%
$13,022
$9,835
($3,188)
-24%
Washington
$3,381
$2,035
($1,346)
-40%
$18,203
$13,405
($4,797)
-26%
West Virginia
$2,591
$1,534
($1,057)
-41%
$13,723
$9,521
($4,203)
-31%
Wisconsin
$3,066
$2.267
($799)
.26%
$16,484
$14,069
($2,415)
-15%
Wyoming
$236
$178
($58)
24%
$1.269
$1,077
($193)
-15%
Note The savings do not total the savings from the CBO baseline because of the differences in the Urban Institute & CBO baselines.
(1) From The Urban Institute as reported in The Impact of the Budget Resolution Conference Agreement on Medicaid Expenditures". July 1995
(2) From the GAO estimates of the block grant allocation of the Conference Agremeent proposal as of November 16. 1995
Note These estimates include supplemental payments for Megal aliens. Nebraska. Nevada & Louisiana
Source US DHHS
16.Nov-95
Comparison of the Conference Agreement to the October House and Senate Medicaid Proposals: 1996-2002
Conference Agreement Formula as of November 16, 1995; House & Senate Propoals as of November 3, 1995
(Dollars in Millions, Federal Spending, Fiscal Years)
Conference Agreement
Senate Proposal
House Proposal
States
Baseline (1)
Medicaid Block Grant
Reduction in Medicaid
Reduction in Medicaid
Reduction (2)
Percent
Reduction (2)
Percent
Reduction (2)
Percent
Reduction
Reduction
Reduction
United States
954,338
-163,192
-17%
-175,594
-18%
-169,357
-18%
Alabama
13,823
-959
-7%
-958
-7%
-1,155
-8%
Alaska
2,001
-341
-17%
-341
-17%
-521
-26%
Arizona
12,903
-1,244
-10%
-1,328
-10%
-1,258
-10%
Arkansas
11,081
-2,507
-23%
-2,506
-23%
-2,964
-27%
California
95,663
-15,353
-16%
-17,964
-19%
-15,555
-16%
Colorado
8,163
-1,796
-22%
-1,820
-22%
-1,927
-24%
Connecticut
12,990
-1,696
-15%
-2,341
-18%
-1,896
-15%
Delaware
1,728
-8
0%
-8
0%
-385
-22%
District of Columbia
4,511
-709
-16%
-710
-16%
-882
-20%
Florida
40,720
-7,675
-19%
-9,205
-23%
-9,537
-23%
Georgia
26,050
-5,702
-22%
-5,776
-22%
-5,709
-22%
Hawaii
2.732
-281
-10%
-281
-10%
-443
-16%
Idaho
2,933
-484
-17%
-488
-17%
-522
-18%
Illinois
33,242
-4,186
-13%
-4,391
-13%
-5,798
-17%
Indiana
23,100
-7,032
-30%
-7,258
-31%
-7,032
-30%
lowa
7,807
-933
-12%
-933
-12%
-936
-12%
Kansas
5,962
-88
-1%
-88
-1%
-133
-2%
Kentucky
18,353
-4,979
-27%
-4,978
-27%
-4,979
-27%
Louisiana
33,991
-15,173
-45%
-15,175
-45%
-5,262
-15%
Maine
5,999
-735
-12%
-845
-14%
-735
-12%
Maryland
13,478
-2.212
-16%
-2,285
-17%
-2,487
-18%
Massachusetts
25,516
-3,701
-15%
-5,684
-22%
-3,707
-15%
Michigan
32.153
-3,635
-11%
-3,634
-11%
-4,253
-13%
Minnesota
14,665
-1,063
-7%
-1,544
-11%
-1,942
-13%
Mississippi
12,640
-1,540
-12%
-1,819
-14%
-1,697
-13%
Missouri
14,871
467
3%
467
3%
321
2%
Montana
3,409
-807
-24%
-820
-24%
-930
-27%
Nebraska
4,448
-785
-18%
-785
-18%
-895
-20%
Nevada
2,899
-360
-12%
-877
-30%
-630
-22%
New Hampshire
3,728
-1,186
-32%
-1.187
-32%
532
14%
New Jersey
28,038
-6,263
-22%
-6,395
-23%
-6,437
-23%
New Mexico
6,066
-461
-8%
-489
-8%
-785
-13%
New York
119,527
-21,196
-18%
-21,710
-18%
-21,975
-18%
North Carolina
29,014
-7,716
-27%
-7.715
-27%
-8,596
-30%
North Dakota
2,491
-506
-20%
-506
-20%
-511
-21%
Ohio
40,586
-7,386
.18%
-7,637
-19%
-7,944
-20%
Oklahoma
11,074
-3,058
-28%
-3,178
-29%
-3,058
-28%
Oregon
8,684
98
1%
76
1%
-1,397
-16%
Pennsylvania
38,448
-2,273
-6%
-2,538
-7%
-3,144
-8%
Rhode Island
5,465
-1,327
-24%
-1,328
-24%
-1,550
-28%
South Carolina
15,252
-1,511
-10%
-1,515
-10%
-1,516
-10%
South Dakota
2,380
-217
.9%
-217
-9%
-375
-16%
Tennessee
24,576
3,838
-16%
-3,837
-16%
-6.228
-25%
Texas
61,167
-5,894
-10%
-7,006
-11%
-6,038
-10%
Utah
5.128
-1,024
-20%
-1,031
-20%
-1,116
-22%
Vermont
1,982
-63
-3%
-65
-3%
-365
-18%
Virginia
13,022
3.188
-24%
-3,292
-25%
-3,193
-25%
Washington
18,203
-4.797
-26%
-4,832
-27%
-5,112
-28%
West Virginia
13,723
-4,203
.31%
-4,202
-31%
-4 460
-32%
Wisconsin
16,484
-2,415
.15%
-2,414
-15%
-2.935
-18%
Wyoming
1 269
.193
-15%
-202
-16%
-285
-22%
Note The savings do not total the savings from the CBO baseline because of the differences in the Urban Institute & CBO baselines
(1) From The Urban Institute as reported in The Impact of the Budget Resolution Conference Agreement on Medicaid Expenditures", July 1995
(2) From the GAO estimates of the DIOCK grant allocation of the Conference Agremeent proposal, as of November 16. 1995
Note These estimates include supplemental payments for illegal aliens Nebraska Nevada & Louisiana
Source US DHHS
16.Nov.95
Washington Post
November 21, 1995
THE FEDERAL PAGE
How Congress Plans to
Balance the Budget
The massive reconciliation bill Congress is sending to President Clinton is intended to
eliminate the federal budget deficit by 2002 while cutting taxes and overhauling Medicare,
Medicaid, welfare, farm price supports and other federal programs. Clinton has vowed to veto
the Republican-sponsored bill, citing objections to a number of provisions. Highlights of the bill:
+
ASSOCIATED PRESS
The Republican measure would allow sale of oil-drilling leases in the Arctic National Wildlife Refuge in Alaska.
-2-
MEDICAID
DEFICIT REDUCTION
The bill would save $163 billion over seven
The nonpartisan Congressional Budget Office
years from Medicaid, which would be converted
projects that the federal deficit, $161 billion in
into block grants to the states. Growth in
1995. would rise to $178 in 1996 and $189 billion
Medicaid spending, which covers 36 million low-
in 1997 before falling to $146 billion in 1998 and
income children, adults, elderly and disabled
then declining toward a $4 billion surplus in
people, would be cut from 10 percent to 5.2
2002.
percent.
TAXES
Federally guaranteed coverage for the poor,
elderly and disabled would be eliminated.
The bill would cut taxes for families,
States would have to cover poor children
businesses and others by $245 billion through
under age 13 and pregnant women in families
2002.
with incomes at or below the poverty line.
For 1995, single parents earning up to $75,000
States also would have to cover the disabled,
and couples earning up to $110,000 would get a
but would get to decide who qualifies as
$125 credit for children younger than 18. It
disabled.
would be paid in a special, separate tax refund
States could tailor their own benefit packages,
check sent out in October 1996. In subsequent
but would have to cover childhood
years, the credit would rise to $500 per child and
immunizations and pre-pregnancy family
would be part of taxpayers' regular tax filing.
planning services.
Retroactive to Jan. 1, the maximum tax rate on
capital gains for individuals would fall to
WELFARE
19.8 percent from 28 percent.
Eligibility for Individual Retirement Accounts
The plan would save $82 billion from
would be expanded.
projected spending over seven years.
Aid to Families with Dependent Children
A deduction of up to $2,500 would be allowed
for interest on student loans.
would be replaced with block grants to the
states, ending the 60-year-old federal guarantee
The so-called marriage penalty would be
of cash assistance to poor children.
phased out for most dual-earner couples by
Food-stamp spending would be trimmed, and
2005.
tens of thousands of legal immigrants, drug
The estate tax exemption would be raised from
addicts and disabled children would be denied
$600,000 to $750,000 over six years and extra
help.
relief would be offered to family-owned farms
Adults on welfare would have to work after two
and businesses.
years. No family could stay on the rolls more
Projected spending for the Earned Income Tax
than five years, or shorter at state option. Half of
Credit for the working poor would be reduced
all welfare families would be required to work by
by $32.5 billion over seven years.
2002.
Some corporate loopholes would be closed.
States could deny cash benefits to unwed teen
mothers. Those who keep benefits would have
MEDICARE
to live at home and attend school.
Medicare spending would be $270 billion less
Additional benefits would be denied for
than projected through 2002 as annual growth,
children born to women already on welfare, but
now about 10 percent, is held to 7.2 percent.
states could opt out of this restriction by passing
Beneficiaries would be encouraged to switch
their own legislation.
to private managed-care plans. They could stay
Only 35 percent of the 900,000 disabled
in traditional Medicare coverage or switch back
children would keep drawing full Supplemental
if unhappy with the private plans. They also
Security Income benefits and 15 percent would
could choose catastrophic-only health coverage
be cut entirely.
coupled with a tax-free medical savings account.
Addicts and alcoholics also would be dropped.
Medicare premiums, now $46.10 a month,
although some could requalify if they have
would climb to $53.70 a month in January 1996
cirrhosis.
and to $88.90 a month by 2002. Single
beneficiaries with annual incomes above $60,000
and couples with incomes of more than $110,000
a year would pay extra premiums.
Scheduled increases in payments to providers
would be scaled back.
The annual $100 deductible in the voluntary
Medicare Part B coverage of doctors' visits and
outpatient services would not change.
- -3-
AGRICULTURE
The package would cut $12.3 billion, or 16
percent. from growth in farm program spending
over seven years. Nearly $9 billion would come
out of major crop subsidies. In a major break
from the past, payments would not be tied to
crop prices or production. Instead, growers
would get a guaranteed "market transition
payment" that would decline each year. In
exchange, growers would be largely free to plant
what they want, and the government would no
longer require land to be idled as a condition for
payments.
EDUCATION
The plan would save $4.9 billion by:
Paring the federal subsidies that banks get for
defaulted student loans.
Having banks pay higher fees.
Limit the Clinton administration's new direct
lending program to 10 percent of the nation's
student loans.
NATURAL RESOURCES
Allow the sale of oil-drilling leases in the Arctic
National Wildlife Refuge in far northern Alaska.
Exempt oil companies from paying
government royalties on deep-water drilling in
the Gulf of Mexico.
Continue the controversial sale of mining
rights on federal land.
Order the sale of the Uranium Enrichment
Corp., a government corporation that processes
and sells uranium.
Require private concessionaires at national
parks to pay more in fees.
OTHER PROVISIONS
Save $10.1 billion over seven years through
changes in federal employee pension programs.
Save $6.7 billion from veterans' benefits over
seven years.
Sell federal assets, including rights to the
space over Amtrak tracks adjacent to
Washington's Union Station, Governors Island in
New York Harbor and precious metals from
national defense stockpiles.
John E. Yang
American Federation of Labor and Congress of Industrial Organizations
EXECUTIVE COUNCIL
MERICAN FEDERATION OF LABOR
815 Sixteenth Street, N.W.
JOHN J. SWEENEY
RICHARD L. TRUMKA
LINDA CHAVEZ-THOMPSON
Washington, D.C 20006
PRESIDENT
SECRETARY-TREASURER
EXECUTIVE VICE PRESIDENT
(202) 637-5000
Albert Shanker
Edward T. Hanley
Wayne E. Glenn
James E Hatfield
Vincent R Sombrotto
Gerald W. McEntee
AFL
CIO
William H Bywater
Marvin J. Boede
CONGRESS
John T. Joyce
Morton Bahr
Robert A. Georgine
Gene Upshaw
Jay Mazur
Lenore Miller
John J. Barry
Moe Biller
George J. Kourpias
John N. Sturdivant
Frank Hanley
James J. Norton
OF
Michael Sacco
Ron Carey
Arthur A. Coia
Frank Hurt
INDUSTRIAL
Gloria T. Johnson
Douglas H Dority
George F. Becker
Stephen P Yokich
J. Randolph Babbitt
Clayola Brown
Richard W Cordtz
M.A. "Mac" Fleming
Carolyn Forrest
Pat Friend
Michael Goodwin
Joe L Greene
Sonny Hall
Sumi Haru
Carroll Haynes
James LaSala
William Lucy
Leon Lynch
Doug McCarron
Andrew McKenzie
A.L. "Mike" Monroe
Arthur Moore
Arturo S Rodriguez
Robert A. Scardellett
Robert E Wages
Jake West
Altred K. Whitehead
For Immediate Release
For information, contact:
Candice Johnson (202) 637-5014
David Saltz (202) 637-5318
New AFL-CIO Leadership Launches National Campaign
to Defeat Republican Budget Cuts
Grass-roots Action and Tough Ads Drive Effort
WASHINGTON, Dec. 5 Buoyed by a national poll showing the vast majority of
Americans oppose the Republican budget, the AFL-CIO today launched a million-dollar
advertising and grass-roots lobbying campaign to "hold members of Congress individually
and jointly accountable for the choices they are making."
"All across the country, polls show, Americans rejected Newt Gingrich's budget-cut-
for-tax-trade-giveaway," AFL-CIO President John Sweeney told a news conference. "And
they flatly rejected the notion of a budget compromise for the sake of compromise."
Sweeney unveiled a new series of television and radio commercials targeting members
of Congress who voted for the Gingrich budget Clinton is expected to veto this week. The
commercials will air over the next week in 22 congressional districts, backed up by
additional national television ads.
The labor federation last week sent more than one million pieces of mail to active
members and retirees in the targeted districts, asking them to call their representatives and
mail a card indicating their support to the president. Phone calls will be made to more than
hal a million households to follow up on the direct mail.
Grassroots political action taking place in a total of 55 congressional districts in 30
states will include local press conferences, leafletting, phone banks, letter-writing campaigns,
rallies, community meetings and visits to congressional offices.
"This new campaign follows an effort that has already yielded 82,000 calls to
Congress from mid-October to mid-November, and almost 270,000 calls since mid-February"
Sweeney said.
The GOP budget bill passed by Congress and now on the president's desk cuts
Medicare by $270 billion and raised Medicare premiums for seniors by $500 a year. The
Medicare cuts will be used for a tax break that will primarily benefit people who already
make more than $100,000 a year.
Sweeney said that a poll conducted two weeks ago for the AFL-CIO by Peter Hart
Research showed the majority of Americans are more likely to trust President Clinton and
the Democrats on budget issues. And they believe Republicans, he said, are promoting the
wrong kind of change by cutting programs such as Medicare, Medicaid and student loans.
-30-
The patriots of the American Revolution
gave us the Bill of Rights.
The extremists of the so-called Republican
Revolution now want to impose a
Bill of Wrongs.
It's the Republican budget.
We The People reject this Republican Bill of Wrongs because it
would:
1. Harm the weakest among us--the elderly, children and low-
income working families.
2. Lavish benefits on the wealthiest among us with a new capital-
gains tax cut whose benefits go disproportionately to those making
over $100,000 a year.
3. Slap elderly Americans with increases in Medicare costs to pay for
excessive tax cuts for the rich.
4. Break the promise of Medicaid and compromise nursing home
protections.
5. Aid and abet companies in raiding workers' pensions.
6. Choke off access to student loan programs, denying thousands of
young Americans the opportunity to go to college.
7. Kill nutrition programs that feed America's poor and school children.
8. Force poor families onto welfare by cutting the Earned Income Tax
Credit that makes work more attractive than public assistance.
9. Inflict draconian cuts in welfare programs and denies benefits to
thousands of legal immigrants who pay taxes.
10. Slash veterans' protections by almost $7 billion over seven years.
OPEN
Republican Budget Raises Taxes On Working Families
But Wealthy Get Big Tax Break
The Republican's $245 billion tax cut goes mostly to the rich and big
business.
The Republican budget reduces the capital gains tax, whose benefits
mostly go to the wealthy.
Republicans scale back the alternative minimum tax for corporations. Some
big businesses may pay no taxes at all.
The Republican budget gives the top 1% of families (over $350,000 a year)
the most tax benefits per family--both in absolute terms and as a percentage of
their income.
The top 1% of families would receive an average tax break of $8,500.
The top 1% of families would receive 17% of the total tax cut in the
Republican budget.
The Republican budget cuts estate taxes by $25 billion. 30,000 wealthy
estates would benefit each year.
Estate tax exemptions would jump from $600,000 to $750,000.
At the same time, the Republican budget raises taxes on working families.
Republicans have cut the Earned Income Tax Credit for working families by
$32.3 billion. That means 12.6 million working families with 14.5 million children
will see their taxes increase by an average of $332 next year.
Families with incomes under $10,000 will see their taxes increase by $16 a
year.
The Republican budget raises taxes on 4.2 million working families with two
or more children by an average of $534 in 1996.
SOURCE--UNITED STATES DEPARTMENT OF TREASURY
IMPACT OF THE REPUBLICAN BUDGET CUTS
November 27. 1995
IMPACT OF REPUBLICAN BUDGET ON EDUCATION:
Denies Head Start to 180,000 children nationwide in 2002. The successful Head Start
program helped 750,000 preschool children in 1995.
The President's balanced budget would increase funding for Head Start by $400
million. creating 32.000 new Head Start slots for children next year. and services
for 50,000 more children by 2002.
The Republican plan would fund Head Start at $500 million below the President's
proposal.
Denies 1.1 million children help in achieving basic and advanced skills in 1996. The
Republican budget cuts Title I by $1.1 billion. denying Title I funding for 1.1 million students
in our poorest communities nationwide.
The President's balanced budget increases Title I funding by $300 million,
reducing class size, and helping as many as 300,000 more children master basic
and advanced skills next year.
Cuts Safe and Drug Free Schools by 60%, denying more than 23 million students services
that keep drugs and violence away from children, their schools, and their communities.
The Republican budget walks away from the Safe and Drug Free School state grants program,
the only federal program solely dedicated to combating alcohol and drug abuse, and violent
behavior in our nation's schools.
The President's balanced budget funds the Safe and Drug Free Schools program
at $500 million per year, providing safer learning environments for 39 million
children in 14,575 out of 15,000 school districts nationwide.
The Republican plan would cut the program by 60% to $200 million per year,
depriving more than 23 million student services next year alone.
Eliminates Goals 2000, denying more than 9 million school children the opportunity to
achieve high academic standards. The Republican budget denies more than 9 million children
improved education in 1996, compared with the President's balanced budget.
The President's plan increases funding for Goals 2000 to $750 million next year,
enabling communities to help all children meet higher standards.
Eliminates the AmeriCorps National Service program, denying nearly 50,000 young people
the opportunity to serve their communities in 1996.
The President's plan would increase funding for National Service by $345 million
next year. providing nearly 50.000 community service and college aid
opportunities next year alone.
Denies 380,000 deserving students Pell Grant college scholarships. The Republican budget
denies about 380.000 students Pell Grants. The Republican budget also increases the Pell Grant
maximum award by only $100 from the 1995 level of $2,340, whereas the President's balanced
budget increases the maximum award to $2,620.
The President's balanced budget would provide assistance for 800,000 more
students by 2002, while the Republican budget eliminates Pell Grant opportunities
for 380,000 students.
Cuts off Direct Lending opportunities for 2.5 million students in 1,300 institutions in 1996
alone. The Republican conference agreement virtually eliminates the Federal Direct Student
Loan program, in favor of the more costly, inefficient guaranteed loan program, by "capping"
direct lending at 10% of total volume.
The Republican plan would also effectively deny students the option of adjusting
their repayments based on their ability to pay, making it difficult for students to
take community service jobs without fear of default. Lenders in the guaranteed
loan program have no practical way to collect repayments based on the
borrower's income.
Using a scoring gimmick, the Republican bill purports to save $1 billion by
capping direct lending.
Eliminates summer job opportunities for nearly 4 million youths over the next seven years.
The Republican cuts will prevent millions of youths from participating in meaningful summer
job experiences that help prepare them to be active contributors in the workforce and the
community. The Republican plan completely eliminates this program, cutting approximately
600,000 job opportunities in 1996 and nearly 4 million summer jobs by 2002.
Slashes employment and training programs by $920 million or 17% below the post-
rescission bill 1995 level.
Denies 193,000 dislocated workers assistance finding new jobs. The Republican
budget cuts funding to help dislocated workers find new jobs by $446 million or 34%
compared to the 1995 level, and by SI 1 billion compared with the President's budget --
a 56% cut. Compared to the 1995. the Republican budget would help 193,000 fewer
workers who need help getting the skills needed for jobs in the new economy due to
increased corporate and defense downsizing.
IMPACT OF REPUBLICAN BUDGET ON THE ENVIRONMENT:
Cuts Enforcement of Public Health and Environmental Safeguards by 25%, Crippling
Efforts to Enforce Laws Against Polluters. The Republicans budget cuts the enforcement of
environmental laws by a quarter because they know that they could not get away with repealing
25% of the nation's environmental laws. They are simply taking the cop off the environmental
beat.
Rolls Back Protection of Drinking Water, Our First Line of Defense in Protecting Public
Health. The Republican budget cuts funds to cities and towns for drinking water treatment
facilities by nearly half in 1996. This cut will take away the funds needed to upgrade facilities
to ensure that local drinking water has been treated to eliminate contaminants.
Leaves Americans Exposed to Hazardous Waste. The Republican budget slashes toxic waste
cleanup, slowing or halting efforts to help the 1 in 4 Americans who live near a toxic waste
dump. Spending on toxic waste cleanups would be reduced by 25% in 1996, $382 million
below the President's balanced budget in 1996.
Blocks Efforts to Keep Raw Sewage off Beaches and Out of Waterways. The Republican
budget reduces new funding to keep water clean by 30% compared with the President's
balanced budget. These cuts will eliminate protections that keep sewage from flowing into
rivers, lakes, and streams. Their budget also includes a provision that will allow the dumping
of potentially toxic fill into our rivers and wetlands.
Opens Arctic Refuge to Oil Companies. The Republican budget opens the coastal plain of the
Arctic National Wildlife Refuge (ANWR) to oil and gas development. The President instead
supports protecting it permanently. The Republicans assume that the lease proceeds will raise
$1.3 billion for the Federal government. But, this is based on a 50-50 split with the State of
Alaska, overriding the Alaska Statehood Act that would normally require 90 percent of the lease
proceeds to be paid to the State.
Robs Taxpayers with Sham Mining Reform. The Republican "reform" of the 1872 Mining
Law is a fraud. Industry could still acquire public minerals at a fraction of their true value.
Recently, for example, $1 billion worth of minerals on government land were sold for just
$275. The Republican proposal would raise only $12 million over 7 years. It would force the
Interior Department to sell mineral rights at their "market value," defined as the value of the
land, not the minerals. This is the equivalent of selling Fort Knox for the price of the parking
lot.
Opens the World's Largest Temperate Rainforest to Clearcutting. The Republican budget
proposes to dramatically expand timber cutting in the Tongass National Forest in Alaska -- the
world's largest temperate rainforest -- and to waive environmental laws to do it.
3
IMPACT OF REPUBLICAN BUDGET ON MEDICARE:
Cuts Medicare by S270 Billion and Increases Costs on Beneficiaries. The Republican
budget cuts Medicare by an unprecedented $270 billion -- three times greater than anything ever
enacted by any Republican or Democratic President -- to fund a tax cut for the wealthy. These
cuts increase direct and indirect costs on Medicare beneficiaries. placing a huge financial burden
on seniors and people with disabilities.
Cuts federal Medicare spending per beneficiary by $1,700 in 2002
Increases premiums to $89 per month in 2002, an annual increase of $440 per couple
Allow doctors to overcharge beneficiaries in their new managed care plans
Limits Medicare Growth Far Below the Private Sector Rate. The $270 billion Medicare cut
would limit spending per Medicare beneficiary to a rate that is more than 20 percent below the
projected private insurance per person growth rate over the next seven years, based on CBO
data.
Abandons Older Americans in Poverty by Slashing Medicaid Coverage of their Medicare
premiums. Medicaid currently pays all Medicare premiums, coinsurance, and deductibles for
people below 100 percent of poverty (known as QMBs). The Republican proposal completely
eliminates coverage of coinsurance and deductibles for poor elderly. And while Republicans
claim to cover their premiums. they set aside less than half of the money needed to cover their
premiums in 2002.
Increase Private Insurance Costs by Billions of Dollars Through Cost-Shifting. Their
excessive cuts, combined with their many ill-advised structural changes to the Medicare
program, will result in massive cost-shifting. Lewin-VHI, an independent research firm,
concluded that the Republicans' $452 billion Medicare and Medicaid cuts would lead doctors
and hospitals to raise their fees on patients by at least $90 billion. This cost-shifting would
increase the cost of private health insurance and could effectively reduce wage increases by
2.7%, and as much as 10% for lower-wage workers.
Cuts Threaten Quality and Access for All Americans. As the Americans Hospital
Association, the Catholic Health Association, the National Association of Public Hospitals, and
over 40 State Hospital Associations said on November 17, the Republican cuts would
"jeopardize the ability of hospitals and health systems to deliver quality care, not just to those
who rely on Medicare and Medicaid, but to all Americans."
Encourages "Cherry Picking" That Will Harm Medicare Beneficiaries and the Program.
The new Republican Medicare plan establishes plans that will "cherry pick" healthy and wealthy
beneficiaries at the expense of beneficiaries who cannot afford these plans. This is because the
healthy and wealthy will be the only ones who can afford the risk of signing up for plans with
extremely high deductibles (Medical Savings Accounts --MSAs) or the cost of being in a plan
that allows doctors to charge any amount they wish for their fees. In fact, the CBO estimates
that the new MSAs will cost the Medicare program between $2 and $4 billion.
4
IMPACT OF REPUBLICAN BUDGET ON MEDICAID:
Repeals the Medicaid Program and Replaces It With a Block Grant. The Republicans
completely eliminate Medicaid's guarantee of coverage for Americans who are sick. elderly.
poor. blind or disabled in other ways. They replace this critical safety net with an underfunded
block grant. which on average cuts Federal support to States by 28 percent in 2002, and
removes the guaranteed health and financial protection that the Medicaid program provides to
the States and to their citizens.
Cuts in Medicaid Are Unprecedented and Excessive. The Republican budget cuts federal
support for Medicaid by an unprecedented $163 billion -- over ten times anything ever enacted
by any Republican or Democratic President.
The total Medicaid cuts could ultimately be much greater than $163 billion. A new
analysis by the Center on Budget and Policy Priorities shows that if states provide only
the funding required to receive their full block grant allocation and provide no additional
funding, the total reduction in federal and state Medicaid funds would exceed $400
billion over seven years. compared with current law.
Cuts Will Cause Millions of Americans To Lose Coverage. The reduction in Federal support
to States would force Governors to drop coverage for nearly 8 million Americans in 2002 alone,
including:
3.8 million children
1.3 million people with disabilities
850,000 elderly
Hurts Rural Americans and Puts Them in Harms Way. States count on Medicaid to
provide health coverage for residents who live in rural areas. The Republican cuts would force
States to eliminate coverage for about 1.9 million rural residents in 2002 alone.
Threatens Nursing Home Coverage. Today, 68% of all nursing home residents rely on
Medicaid to pay bills that average $38,000 a year. Under the Republican Reconciliation bill,
there would be no guarantee to nursing home coverage and as many as 330,000 residents could
be denied coverage in 2002 alone.
Puts Homes and Family Farms at Risk. Under the Republican proposal, the sick could be
forced to sell their homes, family farm, car, and all their savings in order to qualify for
Medicaid. The Republican proposal repeals all current Federal laws protecting a minimum level
of income and assets (such as the family home or farm) in determining Medicaid eligibility. As
a result, it allows States to eliminate these protections altogether or to significantly diminish
them.
5
Repeals Federal Enforcement of Nursing Home Standards. The Republican proposal
undermines Federal nursing home standards signed into law by Ronaid Reagan and threatens to
turn back the clock on nursing home quality. States would be relied on to define and enforce
nursing home standards under the Republican proposal -- without any Federal review and
enforcement. States could even turn over their standard setting and enforcement responsibilities
to private organizations. with no Federal review.
Weakens Spousal Impoverishment Protections. Republicans undermine protections against
spousal impoverishment -- signed into law by President Reagan .. by repealing the right of
individuals to sue States that are not providing spousal impoverishment protections. Moreover.
the Federal government would have no way to know if these protections are being provided.
6
IMPACT OF REPUBLICAN BUDGET ON WORKING FAMILIES:
According to the Joint Tax Committee's own numbers, the 51% of taxpayers with incomes
under $30.000 would as a group have a net tax increase under the Republican plan.
Cuts the Earned Income Tax Credit by $31 billion over seven years, raising taxes on 12.6
million working families (with 14.5 million children) by an average of S332 next year.
The Republican EITC cuts would raise taxes on the 4.2 million working families with
two or more children by an average of $534 in 1996.
One provision in the Republican bill -- counting Social Security benefits in determining
eligibility for the EITC -- would increase annual taxes on a typical Social Security
beneficiary in a family of four by $1,137 in 1996.
About 7.7 million families would have an average net income tax increase of $318, even
after accounting for the fully phased-in $500 child credit and the increase in the standard
deduction for married couples.
Eliminates the Low-Income Housing Tax Credit. This tax provision has helped build homes,
stabilize neighborhoods, and create jobs. Over the years, the low-income housing credit has
helped hundreds of thousands of low-income families afford decent homes.
Eliminates the Community Development Corporation Tax Credit. This tax credit gives
CDCs the tools to seek resources for community development from the private sector.
Weakens our nation's retirement security by allowing companies to raid their pension
funds, reducing pension fund assets by over $15 billion. This proposal would affect an
estimated 3.7 million workers in 5,000 companies. and would take America back to the 1980s,
when corporate raiders routinely looted pension plans to pay for corporate buyouts.
,
Tax Breaks for the Well-Off:
Nearly half of the benefits under the Republican tax package (48%) go to the top
12% of families, those with incomes of $100,000 or more.
The top 1% of families. those with incomes over $349.000. would receive an
average tax benefit of almost $8,500 per family.
The top 1% of families would receive the most tax benefits per family, both in
absolute terms and as a percentage of their income.
Cuts estate taxes by $25 billion over ten years, reducing estate taxes on about
30,000 wealthy estates each year. For example, Republicans propose to increase the
effective estate tax exemption from $600,000 to $750,000.
Each of the very rich estates that would benefit from this proposal would get an
average estate tax cut of more than $80,000!
Cuts capital gains taxes -- disproportionately benefitting the rich -- by $36 billion
over the next 7 years and $77 billion over 10 years.
Real costs of the Republican tax cuts won't be felt until 2002 or later. The
bill indexes capital gains, which would cut taxes for rich Americans, but the
provision is made effective at the end of the budget window so the revenue
losses don't show up. While the seven-year cost of the capital gains tax cut is
$36 billion, the ten-year cost is $77 billion.
Made capital gains provision retroactive. This part of the proposal costs $13
billion -- more than one-third of the total 7-year cost of the capital gains cut.
And all it does is give a huge windfall to those who have already realized
capital gains. It wouldn't increase investment. It provides no economic benefits
whatsoever.
Eliminates most of the corporate Alternative Minimum Tax (AMT), costing the
Treasury $16 billion over 7 years and $19 billion over 10 years. The corporate
AMT was first proposed by President Reagan in response to public outcry over the
large number of prominent, profitable corporations that were paying little or no
corporate income tax. The corporate AMT now ensures that large, profitable
corporations pay at least some tax, but the Republican tax package would eliminate
most of it, at a cost of $16 billion.
8
Includes numerous provisions that benefit special interests. These giveaways total
more than $3 billion over seven years. For example:
Repeals current U.S. taxation of excess passive assets held by controlled foreign
corporations. This will encourage U.S. taxpayers to establish operations outside
the U.S., at a cost of $244 million over 7 years and $433 million over 10 years.
Airline industry granted an additional two-year exemption from the 4.3 cent per
gallon fuel tax. This relief is estimated to cost almost $900 million.
Special depreciation rules for certain retail motor fuel outlet stores. This
provision is retroactive and is estimated to cost $118 million.
Real estate industry received favorable treatment of leasehold improvements.
costing $114 million.
Special three-year write-offs for intrastate operating rights of motor carriers.
This provision costs $37 million.
Treatment of certain newspaper carriers as independents contractors, rather than
as employees. This provision would benefit certain newspaper companies.
According to the Wall Street Journal, Majority Leader Dole is a supporter of
this tax break.
9
IMPACT OF REPUBLICAN BUDGET ON CHILDREN:
Cuts aid to severely disabled children by 25%. The Republican budget slashes $12
billion from children's SSI benefits and jeopardizes the ability of disabled children to
continue to live at home with their families. It would cut payments to most of the
severely disabled children coming on the rolls by 25%. In addition. the Republican
budget removes approximately 160.000 disabled children currently on the rolls.
Cuts nutrition assistance by about 15% for 14 million children in 2002. The
Republican budget cuts foods stamp benefits by about $35 billion over seven years.
And it cuts child nutrition and the school lunch program by $5 billion.
Eliminates Medicaid coverage for as many as 3.8 million children nationwide in
2002. Currently, more than 20% of children rely on Medicaid for their basic health
needs. Medicaid pays for immunizations, regular check-ups, and intensive care in case
of emergencies for about 18 million children in America.
Jeopardizes immunizations for children. The Republican budget repeals the
Vaccines for Children program, putting at risk at least $1.5 billion over seven years that
would otherwise provide vaccinations for children.
Eliminates home energy assistance for about 6 million children in America. The
House Republican budget completely eliminates this $1 billion program that helps low-
income families with their home heating and cooling bills, leaving families with the
tough choice of staying warm in the winter or having enough money to eat.
Slashes child protection by about 20%. The Republican budget slashes child
protection, including funding for foster care, adoption, and investigations of reports of
child abuse and neglect. HHS estimates that total spending is slashed by about 20%, or
about $4 billion over seven years. These cuts would occur at a time when GAO and
others report that resources are already failing to keep pace with the need. Between
1983 and 1993, foster care caseloads mushroomed by two-thirds. Over 1,300 children
die each year due to child abuse and neglect. Yet the Republican budget slashes and
caps these programs, eliminating the guarantee of child protection services.
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IMPACT OF THE REPUBLICAN BUDGET ON HEALTH CARE FOR VETERANS:
Medicaid cuts alone could force states to deny coverage to as many as 150,000
veterans in 2002.
Most could not afford private health care coverage. leaving many veterans
without any health care coverage at all.
More than 600,000 veterans currently depend on Medicaid for their health care.
Medicare cuts would force the 8.8 million veterans on Medicare -- one-third of all
veterans in the United States -- to pay higher out-of-pocket costs for lower quality
care. These 8.8 million veterans include:
More than 4.3 million veterans with combat experience
More than 1.2 million veterans with disabilities connected to their service
45% of Medicare-eligible veterans have incomes of less than $20,000. Some
27% have no private health insurance coverage.
May force hundreds of thousands of veterans on Medicare to seek medical
assistance from VA facilities, but the VA would be unable to accommodate this
increased demand. These veterans comprise a particularly vulnerable population:
73% have a limiting disability
56% report having poor or fair health
87% have incomes of less than $20,000
Reduces VA medical care appropriations by about $400 million from the
President's request for 1996, leaving many veterans untreated.
Taken together, the cuts in Medicaid, Medicare, and VA appropriations jeopardize
the nation's historic commitment our veterans' health and safety.
IMPACT OF REPUBLICAN BUDGET ON FARMERS:
Eliminates the Federal Farm Safety Net by Decoupling Most Payments from
Market Conditions. The Republican budget provides a fixed payment amount per
year, so producers could receive windfall profits in years when market prices are high,
while family farmers' income would not be protected when prices are low. The
President's balanced budget retains the current federal safety net for farmers, allowing
federal payments to vary with market prices.
11
IMPACT OF REPUBLICAN BUDGET ON TECHNOLOGY:
Risks U.S. leadership in science and technology by cutting federal investment in
non-defense R&D by 30% in real dollars over the next 7 years, according to the
American Association for the Advancement of Science.
Reverses 50 years of unwavering, bipartisan commitment to U.S. leadership
in technology. Americans hold millions of jobs in industries that have grown
as a result of wise public and private investment in R&D, including
biotechnology, computers. aerospace. and semiconductors. The average pay in
high-tech industries was 60% higher than the average for all American workers
in 1992.
Guts or eliminates critical industry-led technology programs. The Republican
budget eliminates the Advanced Technology Program (ATP), forcing the government to
renege on its commitment to fund up to 250 current projects involving 700 different
small and large companies, universities, and other organizations in 36 states that have
committed nearly a billion dollars of their own money to these projects. American
competitiveness in the 21st century depends on our ability to continue to fund the
development of these types of high-risk, innovative technologies.
Cuts environmental technology by 22% from the President's request. By juggling
accounts, the Republican budget appears to slightly increase funds for environmental
science and technology. In fact, environmental science and technology funding is cut
by $150 million or 22% from the President's request for 1996, and by $60 million or
10% from the enacted 1995 level. This includes a 92% reduction from the President's
request for the Environmental Technology Initiative (ETI), which would thwart efforts
to encourage development of new technologies that reduce pollution and clean up the
environment while creating new jobs and economic growth. One ETI program alone,
streamlining of environmental regulations, can reduce compliance costs by $700 million
or more throughout the economy.
Terminates or cuts educational technology. The Republican budget terminates or
cuts creative partnerships such as the Technology Learning Challenge, the Star Schools
program, and the Telecommunications and Information Infrastructure Assistance
Program (TIIAP). These programs work with businesses, communities, and schools to
help American students acquire the skills and technical proficiency they need to work
and prosper in the 21st century.
Unilaterally disarms American businesses and workers in the midst of the battle
for global economic competitiveness, despite the fact that since World War II
advances in technology have accounted for as much as half of our nation's
economic growth. If the Congressional budget cuts proceed and the Japanese
Government implements its recently announced plan to double R&D by 2000, Japan
will surpass the United States in total government dollars spent on non-defense R&D
by 1997.
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IMPACT OF REPUBLICAN BUDGET ON COMMUNITY DEVELOPMENT:
Eliminates Valuable Community Development Tool. The Republican budget
eliminates the Community Development Financial Institutions Fund which was created
to bring credit and growth to distressed communities by promoting the formation and
expansion of community development financial institutions (CDFIs). CDFIs provide
credit. capital. equity. and technical assistance to thousands of promising small
businesses. economic development projects, and new homeowners in distressed
communities in urban and rural America. The Treasury Department estimates that each
dollar of federal money generates $10 in new development activity, creating jobs and
economic growth.
Slashes Funding to Demolish the Most Severely Distressed Housing Projects. The
Republican budget cuts nearly in half the President's request for funding to reform
public housing and revitalize communities by demolishing the most severely distressed
housing.
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Name
Date
Harl lacine
3/11/99 Counsel