Fw: (NOEWAIT) The Federal Debt Crisis--Its Potential Impact on Disability

[Guest guest]

This certainly applies to Illinois, as well...while we are struggling in a bad

economic situation here, we need to keep our eye on the federal financial crisis

as well.

Ellen

Ellen Garber Bronfeld

egskb@...

(NOEWAIT) The Federal Debt Crisis--Its Potential Impact on Disability

Good morning everyone,

Marchand, former director of Government Relations for The Arc, wrote the

following piece for the NY Arc newsletter. does a good job of explaining

the relationship between the debt-deficit crisis and services for people with

disabilities.

…more information to encourage you to call the Colorado delegation to ask that

Medicaid not be cut and that a fair and balance approach be taken to address

fiscal problems.

Marijo

The Federal Debt Crisis--Its Potential Impact on Disability

Ever since the United States was founded well over 200 years ago, our nation has

borrowed money to run the federal government. In order to maintain the authority

to borrow, the U.S. Congress has, from time to time, passed laws that have

raised the " debt ceiling. " The highest debt occurred during World War II. There

was not much debate during that war that the need to borrow was critical to

defeat the Germans and the Japanese. Now, however, even though we spend billions

on extended military conflicts in the Middle East, the need to increase the debt

ceiling has sparked major controversy.

The current debt ceiling stands at $14.3 trillion. Technically, that ceiling was

bumped a few weeks ago. Financial manipulation by the U.S. Treasury has extended

the deadline for action to August 2. The debate on what to do about the debt

ceiling calls into question practically everything contained in federal spending

and revenue. Since we have borrowed extensively from China, Japan and other

countries, the very notion that our country would renege on our responsibilities

to our debtors and what that would do to our own economy and the world economy

is also being argued.

Current Action

Last year, President Obama created a bipartisan commission composed of

Congressional leaders and public experts. The commission produced extensive

recommendations to reshape and reduce federal spending and revise tax policies.

So far, no action has been taken on these recommendations. During this session

of Congress there have been a number of efforts to reach a bipartisan deal on

the debt ceiling and the necessary spending and revenue adjustments to reduce

the deficit. Six Senators formed the so-called Gang of Six to work on solutions.

One senator dropped out but they are still trying to achieve a consensus.

Vice-President Biden is working with several members of the House and Senate

majority and minority leadership to reach a deal. Such a deal has so far proven

elusive. President Obama recently met on consecutive days with the entire

membership of each party at the White House. Again, little progress was made.

Both Houses of Congress recently voted down a debt ceiling increase proposal

that did not contain spending cuts or revenue shifts. The Republicans are

insisting on large spending cuts without tax increases to support raising the

debt ceiling. Democrats want a more balanced approach of spending cuts with tax

increases. Some Democrats also want more stimulus spending as part of the

package.

President Obama wants the debt ceiling increased so that this topic will not

need to rise again until after next year's election. So the clock is ticking

until August 2 for the White House and the Congress to find a solution.

Disability Impact

The expectation of large budget cuts has human services groups scrambling to

protect their programs. Since entitlement programs such as Medicaid, Medicare,

and Social Security make up a large portion of the federal budget, they are

obvious targets. Since Medicare and Social Security affect the politically

powerful elderly community, Medicaid appears to be the most vulnerable

entitlement program. Key disability discretionary programs such as IDEA,

Vocational Rehabilitation, and Supported Employment could also be targets for

cuts, even elimination. Given the dire financial circumstances in most states,

the loss of significant federal funding for disability programs will be double

jeopardy.

Disability advocates should be redoubling their efforts to convince the Congress

that major cuts to disability programs will result in desperate situations for

many of their constituents.

Marijo Rymer

Executive Director

For people with intellectual and

developmental disabilities

1580 Logan--Suite 730

Denver, CO 80203

303-864-9334 ext 11

303-229-9499 (cell)

www.thearcofco.org