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July 5, 2008

Carney denounces feds’ budget cuts

Freshman Democrat says the reductions would have a significant impact in District 10.

By Bill O'Boyle boboyle@timesleader.com
Times Leader Staff Writer
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WASHINGTON – Chris Carney testified before federal budget makers last week because he said it was vital for him to make them understand how proposed cuts would impact his constituents.

But, a spokeswoman for the Office of Management and Budget took exception to portions of Carney’s testimony and responded to each of three claims made by the freshman Democrat.

Carney, D-Dimock Township, testified Thursday before the House Budget Committee about federal budget cuts that will have a significant local impact in northeast and central Pennsylvania. Carney represents the 10th Congressional District.

“When the president’s budget came out, there were a number of cuts that will significantly impact our hard-working families in northeast and central Pennsylvania,” Carney said. “I testified that cuts to vital programs – such as the Clean State Revolving Fund, Medicare and Federal Aid Highway Program – are unacceptable. We cannot pass the buck to our local communities.”

Carney told the committee he feels the president’s proposal to cut $556 billion from Medicare is unacceptable. Although President Bush’s budget calls for a higher allocation to Medicare, Carney said the president has proposed cuts to health-care providers, which he feels will ultimately result in higher health care costs. Carney said preventive care is far less expensive than crisis treatment.

“These cuts will end up hurting our seniors and costing the taxpayer more money as patients seek emergency room care, which is much more expensive, for minor ailments,” Carney said.

Christin T. Baker, Office of Management and Budget press officer, said the president’s budget will slow the growth of Medicare.

“It is now growing at 7.2 percent each year,” Baker said. “In order to put Medicare on a more sustainable path, the president proposes Medicare grow at 5 percent each year instead.”

Baker said the proposed changes will not impact patient access and the only effect it would have on costs for patients would be to ask those senior citizens “with greater means” to contribute a greater share to their health care.

“The president has offered a reasonable and responsible approach that helps preserve this important program for future generations,” Baker said. “This proposal helps reduce by nearly one-third the massive unfunded obligation in the program (which is $34 trillion over the next 75 years).”

Carney asked the budget committee members to reject the president’s cut for the Federal Aid Highways Program. Specifically, Carney said, the president’s budget proposal is $800 million below the level needed to maintain current services, providing only $39.4 billion for 2009.

“This jeopardizes our nation’s transportation infrastructure,” said Carney, a member of the House Transportation and Infrastructure Committee.

In his first year in office, Carney has made funding for local transportation needs a top priority in Congress, including public transportation needs in Lycoming County and securing funding for the Central Susquehanna Valley Throughway in Snyder, Union and Northumberland counties.

“But even more troubling is the cost in real dollars and real lives that we witnessed this past summer with the collapse of the I-35 Bridge in Minnesota,” Carney said. “We must not allow another tragedy like that to happen.”

Carney told the committee there are 29 structurally deficient bridges in his district, according to the U.S. Department of Transportation.

Baker said the budget provides $39.4 billion as the final installment of the total funding of $286.4 billion authorized by Congress in the Highway Bill.

“We’re proposing spending that does not exceed the levels that were set by Congress,” Baker said. “Notably, there is so much spending that we are at risk of exhausting the balances in the highway account of the Highway Trust Fund. Any additional spending would risk a tax increase that would compound the pain people are already feeling at the pump.”

Since the president took office, transportation spending for grants to states and locals has increased by nearly 53 percent, Baker said. And, Baker said, the latest statistics show the condition of the nation’s highways and bridges is improving.

Baker said the percentage of vehicle miles traveled on pavements with “good” ride quality rose from 39.4 percent in 1997 to 44.2 percent in 2004. Similarly, the percentage of bridges considered to be structurally deficient dropped from 16 percent in 1998 to 13.1 percent in 2004.

Carney addressed the president’s proposal to cut $555 million in funding for the Clean Water State Revolving Fund, which he said is $148 million below the level needed to maintain current services.

Baker disputed Carney’s assessment and said the budget does not call for cutting the Clean State Revolving Fund by $555 million.

“These grants are distributed as low-interest (or zero-interest) loans to our communities to perform necessary sewage treatment upgrades,” Carney said. “In Pennsylvania, these cuts mean a reduction of over $6 million to our state.”

But, Baker said, Congress provided significantly more for the Clean Water fund than requested in fiscal years 2004 through 2007.

“That is the level ($555 million) at which the president proposes to fund the State Revolving Fund,” Baker said. “This proposed funding level will meet the administration’s funding target of $6.8 billion total for (fiscal years) 2004-2011 and enable the Clean Water SRF to provide $3.4 billion in loans annually, even after Federal assistance ends.

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