State Budget Cuts Hurt Kids Most
by Bill Ayres, Executive Director
In the present fiscal year of 2004, the state budget deficits are estimated at $78 billion. If you add in the large deficits of fiscal years 2002 and 2003, the three-year budget gap for the states is almost $200 million. Estimates for fiscal year 2005 are already $40-41 billion in just 21 states and could rise to more than $50 billion despite an improving economy.
States must balance their budgets. How have they done it? Many have raised taxes and fees for service, and most of those increases have been regressive, hurting poor and middle class families disproportionately. Most of the deficits however, have been made up by cuts in services.
For example, in fiscal year 2004 states spent $60 billion less to make up most of the $78 billion deficit. Where were the biggest budget cuts targeted? CHILDREN. During the past two years 34 states have made cuts in public health insurance programs. About 40 percent of the cuts have been targeted to low income children. There are now 6.8 million low-income children without health insurance.
32 states have cut eligibility for childcare subsidies or limited access to childcare in other ways.
11 states cut K-12 education funding in fiscal year 2004 on top of 11states in fiscal year 2003.
Numerous states are cutting subsidies to state colleges causing double digit increases in college tuition and cutbacks in courses being offered.
We say we are a country that loves our children. If that is so should children be the prime targets for state budget cuts? One last question, do we know the long term consequences of these budget cuts on America's children?
Source material:
This article is based on three recent studies from the Center On Budget and Policy Priorities.
A Brief Overview Of State Final Additions And The Effects Of Federal Policies on State Budgets. (Revised December 3, 2003)
Projected State Budget Deficits For Fiscal Year 2005 Continue To Threaten Public Services (Revised December 22, 2003)
Up To 1.6 Million Low Income People Including About Half a Million Children Are Losing Health Coverage Due To State Budget Cuts (December 22,2003)