Washington, D.C. -  U.S. Rep. Rick Larsen (WA-02) expressed disappointment today with the president’s budget for fiscal year 2007.

“Today, the president handed us a budget with misplaced priorities that slash funding for critical domestic initiatives.  The president has continued his policies of fiscal recklessness combined with moral irresponsibility.  Last year these policies resulted in a $423 billion deficit, the largest in our nation’s history.  This year’s budget looks like more of the same.

“The president’s $2.7 trillion budget fails our veterans, children, senior citizens, and law enforcement community. At a time when Americans are hungry for hope – this budget can’t even feed hope to those who need it most.

“Astonishingly, the president has proposed cutting $36 billion in Medicare spending over the next five years – while still pushing through tax cuts for the wealthiest Americans.

“Washington state communities want to see their children succeed and their businesses thrive.  Yet, this budget ignores those hopes by slashing essential funds to education and small business loans.

Larsen highlighted several issues of concern with the president’s fiscal year 2006 budget:
SMALL BUSINESS/JOBS: Small businesses employ nearly half of all workers and create three out of four new jobs, but the budget continues the elimination of important administrative costs for 7(a) loans. It also terminates funding for SBA's Microloan Program that gives small startup companies the opportunities to get off the ground and running.

VETERANS: The budget raises health care costs for many veterans, nearly doubling some co-payment fees and adding a new $250 enrollment fees.  These fees will drive more than 234,000 veterans out of veteran’s healthcare.

METH: The budget eliminates funding for Byrne-Justice Assistance Grants (JAG) - a program that provides grant money for multi-jurisdictional drug task forces. It also cuts funding to Community Oriented Policing Services (COPS), which helps local police forces with staffing needs.

HOUSING: This budget cuts nearly $800 million funding to the Community Development Block Grant program, which supports social services like childcare programs, emergency shelters and affordable housing efforts.

EDUCATION: The budget eliminates funds for the Safe and Drug Free Schools and Communities state grants, and educational technology state grants.  It also decreases funding for Impact Aid, which improves education funding for military children and other children that live on federal land. And this budget still doesn’t request the full amount, authorized by law, for the No Child Left Behind Act.

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