Archives for category: Budget Cuts

Heather Cox Richardson writes about Biden’s deliberately low-key description of the deal he made with Kevin McCarthy. McCarthy is on television, Biden is not. McCarthy claims victory, Biden is quiet. What gives? (Interesting comment at the end of the post: Tara Reade, the woman who accused Joe Biden of sexually assaulting her has moved to Russia “for her safety.”)

She writes:

“[O]ne of the things that I hear some of you guys saying is, ‘Why doesn’t Biden say what a good deal it is?’” President Joe Biden said to reporters yesterday afternoon before leaving the White House on the Marine One helicopter. “Why would Biden say what a good deal it is before the vote? You think that’s going to help me get it passed? No. That’s why you guys don’t bargain very well.”

Biden’s unusually revealing comment about the budget negotiations was actually a statement about his presidency. Unlike his Republican opponents, he has refused to try to win points by playing the media and instead has worked behind the scenes to govern, sometimes staying out of negotiations, sometimes being central to them.

The result has been, as Daily Beast columnist David Rothkopf summarized today, historic. Biden has worked to replace 40 years of supply-side economics with policies to rebuild the nation’s economy and infrastructure by supporting ordinary Americans. The American Rescue Plan gave the United States a faster economic recovery from the COVID pandemic than any other major economy. The Bipartisan Infrastructure Law has already funded more than 32,000 projects in more than 4,500 communities in all 50 states, Washington D.C., and U.S. territories.

The Inflation Reduction Act made the biggest investment in addressing climate change in our history, and according to University of Washington transportation analyst Jack Conness, it and the CHIPS and Science Act have already attracted over $220 billion in private investment, much of it going to Republican-dominated states: Tennessee, Nevada, North Carolina, and Oklahoma have each attracted more than $4 billion; Ohio, more than $6 billion; Arizona, more than $7 billion; South Carolina, more than $9 billion; and Georgia, more than $13 billion.

Victoria Guida in Politico yesterday reported that the reordering of the economy under Biden and the Democrats has reversed the widening income gap between wage workers and upper-income professionals that has been growing for the past 40 years. The pay of those making an average of $12.50 an hour grew by almost 6% from 2020 to 2022, even after inflation.

Those gains are now at risk as pandemic measures end and the Fed raises interest rates to bring down inflation, although the wage increases are only a piece of the inflation puzzle: Talmon Joseph Smith and Joe Rennison of the New York Times today reported that companies raising their prices to “protect…profits” are “adding to inflation.” In other words, companies pushed prices beyond normal profit margins during the pandemic and the economic recovery, then maintained those higher profit margins with the Russian invasion of Ukraine, and continue to maintain them now.

The fight over the debt ceiling is both an example of the different approaches to negotiation on the part of Biden and Republicans like House speaker Kevin McCarthy (R-CA), and part of the larger question about the direction of the country.

On January 13, 2023, Treasury Secretary Janet Yellen warned McCarthy that the Treasury was about to hit the borrowing limit established by Congress and that she would have to resort to extraordinary measures in order to meet obligations until Congress raised the debt ceiling.

On March 9, as part of the usual budget process, Biden produced a detailed budget, which was a wish list of programs that would continue to build the country from the bottom up. He told McCarthy he would meet with the speaker as soon as he produced his own budget, which McCarthy could not do because the far-right House Freedom Caucus (these days being abbreviated as HFC) wanted extreme cuts to which other Republicans would never agree.

On April 26 the House Republicans passed a bill that would require $4.8 trillion in cuts but was quite vague about how it would do so apart from getting rid of much of the legislation the Democrats had just passed. HFC members said they would not raise the debt ceiling until the Senate passed their bill. That is, they would drive the United States into default, crashing the U.S. and the global economy, until the president and the Democrats agreed to their policies. Even then, they would raise it only until next spring, with the expectation that it would then become a key factor in the 2024 election.

Biden insisted all along that he would not negotiate over the debt ceiling, which pays for money already appropriated under the normal process of Congress and which Congress raised three times under former president Trump even as he added $7.8 trillion to the national debt. Biden said he would happily negotiate over the budget. McCarthy, meanwhile, was out in front of the cameras and on social media insulting Biden and insisting that it was Biden’s fault that talks took so long to get started.

Late Saturday, the two sides announced an agreement “in principle” to raise the debt ceiling for two years—clearing the presidential election. As the Washington Post’s Catherine Rampell noted, it protects current spending on Social Security, Medicare, and Medicaid; keeps tax rates as they are; increases spending on defense and veterans’ programs; leaves most other domestic spending the same; cuts a little from the expanded funding of the Internal Revenue Service; and tweaks both the permitting process for energy projects and the existing work requirements in the food assistance program.

As Rampell points out, “this much-ballyhooed ‘deal’ doesn’t seem terribly different from whatever budget agreement would have materialized anyway later this year, during the usual annual appropriations process, under divided government. To President Biden’s credit, the most objectionable ransoms that Republicans had been demanding are all gone.”

Now the measure has to get through both parties, with congressmembers back in Washington today after the holiday weekend. Freedom Caucus members are howling at the deal. Representative Chip Roy (R-TX) is threatening to bottle the measure up in the House Rules Committee, which decides what bills make it to the floor. The Freedom Caucus forced McCarthy to stack that committee with far-right extremists as part of his deal for the speakership (it has nine Republicans but only four Democrats on it). But Josh Marshall of Talking Points Memo suggests that McCarthy’s alliance with Representatives Jim Jordan (R-OH) and Marjorie Taylor Greene (R-GA) might pay off here, since the two have thrown their weight behind the measure.

Even if the measure does pass before the June 5 deadline when the Treasury runs out of money, it has had an important effect. As Rampell noted, it has weakened the United States. It has enabled both China and Russia to portray the U.S. as unstable and an unreliable partner. As if to prove that criticism, Biden had to cancel a trip to Australia and Papua New Guinea, where he was strengthening the Indo-Pacific alliances designed to weaken Chinese dominance of the region. (And Russia continues to involve itself in U.S. politics: today Tara Reade, the woman who in 2020 accused Biden of sexually assaulting her, appeared on Russian television next to alleged spy Maria Butina to say she has fled to Russia out of fear for her life in the U.S.)

Writing in Foreign Policy, Howard W. French sees a more sweeping problem with the debt ceiling fight: it “highlights America’s warped priorities.” “[W]hen a rich and powerful country finds it easier to cut back on the way that it invests in its people, in education, in science, and in making sure that the weakest among them are not completely left behind than to curtail useless and profligate weapons spending,” he said, “there are reasons to worry about the foundations of its power.”

Notes:

https://www.whitehouse.gov/briefing-room/statements-releases/2023/05/12/fact-sheet-biden-harris-administration-kicks-off-infrastructure-week-by-highlighting-tremendous-progress-rebuilding-americas-infrastructure-18-months-in/

https://www.whitehouse.gov/build/

https://www.whitehouse.gov/omb/briefing-room/2023/03/09/fact-sheet-the-presidents-budget-for-fiscal-year-2024/

https://www.jackconness.com/ira-chips-investments

https://www.politico.com/news/2023/05/29/low-income-wages-employment-00097135

https://home.treasury.gov/news/press-releases/jy1188

https://home.treasury.gov/news/press-releases/jy1454

https://rollcall.com/2023/04/26/house-passes-1-5-trillion-debt-limit-increase-spending-cuts/

https://www.washingtonpost.com/opinions/2023/05/28/debt-limit-deal-budget-differences/

https://www.politico.com/news/2023/05/30/debt-ceiling-deal-house-rules-committee-republicans-00099245

https://talkingpointsmemo.com/edblog/freak-cavalcade-but-not-more

​​https://www.thedailybeast.com/joe-biden-accuser-tara-reade-claims-she-defected-to-russia-after-sexual-assault-allegations

Michael Hiltzik of the Los Angeles Times explains how Republicans agreed to the increase in the debt ceiling: by cutting aid to the neediest. He wrote: The cruelty is the point.

No one should be surprised that the resolution of our most moronic fiscal policy, the federal debt ceiling, involved our stupidest social policy, work requirements for assistance programs.

But that appears to be the case. In negotiations between the Biden White House and House Speaker Kevin McCarthy’s Republican caucus, one of the last sticking points was whether, and by how much, to tighten work requirements for food stamps and welfare.

In coming days, as Congress moves toward votes on the deal, political commentators will thoroughly masticate the question of whether Biden or McCarthy (R-Bakersfield) prevailed in this dealmaking and which of them will be hurt or harmed politically by the outcome.

Democrats right now are willing to default on the debt so they can continue making welfare payments for people that are refusing to work.

— Rep. Garret Graves (R-La.) tells a giant lie about the debt ceiling negotiations

That’s not a very interesting parlor game. (Personally, I’d go with the judgment of Timothy Noah of the New Republic, who thinks Biden emerges as the political victor and McCarthy’s days as speaker are numbered, thanks to the choler of his far right wing.)

More important is what the deal says about the principles of both camps. The granular details of the agreement were still murky Sunday, and it could still collapse because of objections from congressional Republicans or Democrats.

The deal, as reported, freezes discretionary federal spending — that is, most of the programs for which Americans depend on the federal government — at current levels for the next two years, with increases lower than inflation. That means an effective budget cut, relative to inflation. In return, the debt ceiling is suspended for two years.

But Biden managed to preserve the accomplishments of his presidency thus far from the GOP’s knives. He fended off their efforts to torpedo the support for renewable energy in last year’s Inflation Reduction Act, their harshest proposed budget cuts, the rollback of student debt relief, and repeal of his budget increase for the Internal Revenue Service.

(Reports say that $10 billion will be shaved off the $80-billion 10-year IRS budget increase, but the money can be redirected to other programs.)

Biden rejected Republican demands to impose work requirements on Medicaid, but allowed some tightening of the rules for food stamps — the Supplemental Nutrition Assistance Program, or SNAP, and Temporary Assistance for Needy Families, or TANF, which is what’s left of traditional welfare.

Make no mistake: No rich American will be harmed even a bit by this deal. Some may even be advantaged, if the carve-out from the IRS budget comes from the agency’s enforcement efforts; that would help the rich, who are the nation’s worst tax cheats.

The most vulnerable Americans, however, will bear the brunt of the deal points. Let’s take a look.

Start with work requirements. As I’ve reported ad infinitum over the years, work requirements on safety net programs accomplish nothing in terms of pushing their beneficiaries into the job market.

They are, however, very effective at throwing people off those programs; that’s what happened in Arkansas , where 17,000 people lost Medicaid benefits in 2019 after only six months of a limited rollout of work rules. A federal judge then blocked the changes.

The debt ceiling deal will tighten work requirements for SNAP by requiring able-bodied, childless low-income adults younger than 55 to work 20 hours a week or be engaged in job training or job searches. If they don’t meet that standard, their SNAP benefits end after three months. Current law applies to those adults only up to the age of 49. The change will expire in 2030.

This rule will do virtually nothing to reduce federal spending, which Republicans say has been the whole point of holding the debt ceiling hostage. The Congressional Budget Office estimated in April that the change would reduce federal spending by $11 billion over 10 years, or $1.1 billion a year.

By my calculation, that comes to 17 thousandths of a percent of the federal budget, which this year is $6.4 trillion.

If it’s scarcely a rounding error in federal accounts, however, it’s critically important to the recipients of food aid. The CBO estimated that about 275,000 people would lose benefits each month because they failed to meet the requirement.

Biden’s negotiators did get the Republicans to waive SNAP rules for veterans and the homeless, which will probably lower that figure and limit the reduction of federal spending.

Work requirements for safety net programs have been a Republican hobby horse for decades. It’s based on the Republican image of low-income Americans as layabouts and grifters — the “undeserving poor.”

Sure enough, Rep. Garret Graves (R-La.), one of McCarthy’s debt-ceiling negotiators, couldn’t resist slandering this vulnerable population during the talks. “Democrats right now are willing to default on the debt so they can continue making welfare payments for people that are refusing to work,” he said during a break.

Of course, it was Republicans who showed willingness to default on the federal debt. Nor is there a smidgen of evidence that any sizable percentage of this target population is “refusing to work.”

The vast majority of SNAP recipients already work, but they’re in low-paying jobs that are so unstable that they often drift in and out of employment. According to the Census Bureau, 79% of all SNAP families include at least one worker, as do nearly 84% of married couples on SNAP.

In other words, the GOP insistence on work requirements is nothing but the party’s typical performative malevolence toward the poor. If they really cared about getting SNAP recipients into the job market, they’d fund job training programs and infrastructure projects. They never do.

In any case, the only cohort of beneficiaries that tends to move into the job market at all are younger recipients — not those in their 50s. All that work requirements accomplish is to erect bureaucratic barriers to enrollment in the safety net. But that’s the point, isn’t it?

The work rules for TANF are managed somewhat differently — they’re directed at the states administering the program, which have been required to ensure that a certain percentage of beneficiaries are working or looking for work. How the debt ceiling deal applies to that program is unclear.

In the next week or so, before June 5 — the putative date at which the Treasury Department says the government runs out of money to pay its bills without a debt ceiling increase and thus flirts with an unprecedented default — Biden and McCarthy will hit the hustings to claim victory.

But there’s really only one way to think about the exercise we’ve just gone through. It was a supreme waste of time.

Republicans showed they were willing to crash the U.S. economy to make some bog-standard complaints about the federal deficit, most of which they created themselves through the 2017 tax cuts they enacted for the wealthy. Their initial negotiating stance was so extreme that they must have known it could never gain Democratic votes in the House or pass the Democratic Senate.

The Democrats held reasonably firm. They agreed to some modest budget constraints for two years, moved the next debt ceiling cabaret off to beyond the next election, and saved millions of Americans from serious economic pain.

As I’ve written before, if Republicans were really serious about restraining federal spending, they wouldn’t have voted for the tax cuts and budget increases that that contribute to the deficit.

Instead, they said the only way to control spending is to refuse to pay the bills they ran up, by refusing to increase the debt ceiling. They lied, and every thinking American knows they lied. So tell me, why did we go through this again?

As everyone, I hope, remembers, Kevin McCarthy wanted to be Speaker of the House. He wanted it so badly that he had to wheel and deal to get the votes he needed from the Republican Caucus. Even though the Caucus had a slim majority, the most rightwing members withheld their votes, denying him victory. Ultimately, the so-called Freedom Caucus was able to deny him what he wanted until he made multiple concessions, like putting its members on important committees and agreeing that he could be ousted by a simple majority vote. To win the Speakership on the 15th round of balloting, he had to agree to their demands.

Now his hands are tied in the debt negotiations with President Biden because the Freedom Caucus wants deep budget cuts and no compromise. Basically, everything but defense, Social Security and Medicare would be slashed by some 22%, and Biden’s efforts to address climate change would be gutted.

The Freedom Caucus doesn’t care if the federal government defaults on its debts. The public doesn’t follow details closely, and it would likely blame Biden, because he is President.

Kevin McCarthy needs a way to escape the chokehold of the Freedom Caucus so he can negotiate a compromise.

Here’s a plan to free him. The number of Republicans who are aligned with the Freedom Caucus is between 20-50 (they don’t publicize their numbers). That’s how many votes McCarthy needs to hold on to his job.

Why don’t Democrats offer him enough votes so he doesn’t need the Freedom Caucus? Since the Democrats can never win the Speakership in this session, why shouldn’t they all vote for McCarthy in exchange for his agreement to negotiate to raise the debt ceiling? Why shouldn’t he win bipartisan support for doing the right thing?

The Democrats have it within their power to free McCarthy from the extremists in his party who have no qualms about crashing the world economy.

President Biden has said he would not compromise on raising the debt ceiling but lately he has sent mixed signals. If the debt ceiling is not raised, the United States would be forced to default on its bonds for the first time in history. Congress raised the debt ceiling three times during Trump’s term in office. Congressional Republicans passed a budget that allows increases for defense and border security but requires steep cuts in everything else. Trump, the titular leader of the Republican Party, said at his New Hampshire town hall, that the U.S. should default on its debt, even though most economists predict that a default would likely precipitate a deep recession, with global consequences. Trump once called himself “the king of debt,” so he has no fear of the consequences, which would hurt Biden in 2024.

Ryan Cooper of The American Prospect explains why the President should not compromise and what those cuts would mean:

For months, President Biden had a consistent line on the debt ceiling: He would accept only a clean increase, without conditions. This was the lesson from the Obama administration, it was thought, learned at great expense when President Obama tried to negotiate with Tea Party Republicans in 2011 to get a grand bargain to cut the deficit. The result was the budget “sequester,” which badly eroded the federal government and elongated the agonizingly slow economic recovery. That’s why Obama stood his ground in 2013, and Republicans—eventually—backed down, getting essentially nothing out of the eventual debt ceiling increase.

But now all that is out the window. With the June 1 X-date approaching, the Washington media clamoring for Biden to cave, and administration officials working themselves into an anxious fit over potential executive actions to nullify the ceiling, it seems President Dark Brandon is returning to be old Conciliatory Joe. The man himself telegraphed this in a speech in New York last week that was designed to hammer Republicans over the debt ceiling, saying “we should be cutting spending and lowering the deficit without a needless crisis, in a responsible way.”

Reuters and Politico report that the White House is preparing to offer concessions in the form of cutting discretionary spending to the level of fiscal year 2022, and then capping the rate of increase at 1 percent per year for an indeterminate period, maybe two years. There would be other parts to the compromise, including rescinding some COVID aid and some bargain on permitting reform, but as far as spending, the discretionary caps would be the major piece.

This is a disastrous move. Politically, it reinforces the precedent that Republicans can extract concessions through legislative terrorism, and by signaling weakness and timidity in the Democratic leadership, it will further enable GOP extremism. If Republicans control either chamber of Congress next time the ceiling is hit—a high likelihood given how bad the Senate map is in 2024—then they’re virtually certain to take the debt ceiling hostage again.

But the practical consequences will also be terrible. We don’t know the details yet, but returning to fiscal year 2022 budget levels would mean an immediate cut of about 13 percent to every government agency and program (thanks to an unusually large spending increase in 2023 to account for economic growth, high inflation, and a few additional programs). If defense and border cops are exempted, then the cut will be perhaps 22 percent.

Read all of our debt ceiling coverage here

Rep. Rosa DeLauro (D-CT), the ranking member on the House Appropriations Committee, solicited estimates from various government departments on what that 22 percent cut would mean. They told her that just for starters, 60,000 people would not be able to attend college; 200,000 children would get kicked off Head Start; 100,000 families would lose child care; and 1.2 million people would be removed from WIC nutrition assistance.

One hundred twenty-five air traffic control towers would be shut down, affecting one-third of airports, and no doubt worsening the chronic snarls in American air travel. Rail safety inspections would be cut back by 11,000 work days, meaning 30,000 miles of track going uninspected. (More dangerous chemical spills, here we come!) Some 640,000 families would lose rental assistance, and 430,000 more would be evicted from Section 8 housing. And even all that isn’t the whole list of carnage.

Now, Republicans have not suggested an across-the-board cut, and it’s certainly possible that some of the above priorities would be spared. But that would only make the cuts to the programs that don’t get such treatment worse, because appropriators would need to hit that overall cap number.

Incidentally, this illustrates well the utter stupidity of Republican budget politics. Instead of drawing up a list of priorities, calculating how to fund them, and then writing a budget plan to fit—they neither know nor care about any of that stuff—they just demand arbitrary and escalating cuts to everything that isn’t the troops or border police, because that’s what right-wing media says is the most conservative thing to do.

Needless to say, there’s no indication of any revenue increases being discussed to offset this pain. Anti-tax Republicans wouldn’t like that, and in this hostage situation, you mustn’t anger the guys (and it’s mostly guys) with the guns.

There may well be macroeconomic effects from this deal as well. These cuts would suck hundreds of billions of dollars out of an economy that is already plainly softening, thanks to high interest rates and instability in the banking system. A ton of austerity might just be the thing that tips America into a recession during an election year, with Biden, a willing negotiator in this process, on the ballot.

Finally, it’s not at all clear that House Republicans will actually accept this partial ransom. Speaker of the House Kevin McCarthy just barely managed to pass his current debt ceiling hostage note by giving the far right everything it asked for (and then only because two Democrats were absent from the chamber). Sure enough, several members told PoliticoFriday that they want the spending cap to last ten years instead of two, at a minimum. As I was writing this, others also told Politico they want harsh border controls as well.

From their perspective, this makes perfect sense. If Biden is too weak-willed to stare down Republicans like Obama did in 2013, and too chicken to mint the coin or invoke the 14th Amendment, why not demand more concessions while he’s on the ropes? Heck, why not demand the entire ransom, including work requirements for Medicaid and gutting the Inflation Reduction Act?

Two years of capped spending is bad enough. But it might end up being even worse.

The federal government has to raise the ceiling on the debt or face a default on its bonds, which would set off a national and international crisis. Congress has raised the debt ceiling many times in the past, including three times during Trump’s term.

An extraordinary part of the national debt was generated during Trump’s four years in office, according to ProPublica, especially his 2017 tax cut for the 1% and corporations:

One of President Donald Trump’s lesser known but profoundly damaging legacies will be the explosive rise in the national debt that occurred on his watch. The financial burden that he’s inflicted on our government will wreak havoc for decades, saddling our kids and grandkids with debt….The growth in the annual deficit under Trump ranks as the third-biggest increase, relative to the size of the economy, of any U.S. presidential administration, according to a calculation by a leading Washington budget maven, Eugene Steuerle, co-founder of the Urban-Brookings Tax Policy Center. And unlike George W. Bush and Abraham Lincoln, who oversaw the larger relative increases in deficits, Trump did not launch two foreign conflicts or have to pay for a civil war.

Republicans do not want to raise the debt ceiling. President Biden challenged them to come up with their own plan. They did. It involves cuts of 22% to everything but Social Security, Medicare, and defense spending.

Dana Milbank wrote in the Washington Post:

Jen Kiggans had the haunted look of a woman about to walk the plank.

The first-term Republican from Virginia barely took her eyes off her text Wednesday as she read it aloud on the House floor. She tripped over words and used her fingers to keep her place on the page.
The anxiety was understandable. Like about 30 other House Republicans from vulnerable districts, she was about to vote in favor of the GOP’s plan to force spending cuts of about $4.8 trillion as the ransom to be paid for avoiding a default on the federal debt.

“I do have serious concerns with the provision of this legislation that repeals clean-energy investment tax credits, particularly for wind energy,” she read. “These credits have been very beneficial to my constituents, attracting significant investment and new manufacturing jobs for businesses in southeast Virginia.”

Directing a question to the Republicans’ chief deputy whip, Guy Reschenthaler (Pa.), she asked for “the gentleman’s assurance that I will be able to address these concerns as we move forward in these negotiations and advocate for the interests of my district.”

The gentleman offered no such assurance. “I support repealing these tax credits,” he replied, offering only the noncommittal promise to “continue to work with the gentlewoman from Virginia, just like we will with all members.”

Kiggans then cast her vote to abolish the clean-energy credits her constituents find so “beneficial.”
House GOP leaders are celebrating their ability to pass their debt plan, even though it has no chance of surviving the Senate nor President Biden’s veto pen. But the bill’s passage has achieved one thing that cannot be undone: It has put 217 House Republicans on record in favor of demolishing popular government services enjoyed by their constituents.

In Kiggans’s Virginia, the legislation she just backed would strip tax incentives that go to the likes of Dominion Energy, which is building a $9.8 billion offshore wind project in her district. She also voted to ax solar and electric-vehicle incentives for hundreds of thousands of Virginians, and tax breaks projected to bring $11.6 billion in clean-power investment to the commonwealth.

In addition, the bill she supported sets spending targets that require an immediate 22 percent cut to all “non-defense discretionary spending” — that’s border security, the FBI, airport security, air traffic control, highways, agriculture programs, veterans’ health programs, food stamps, Medicaid, medical research, national parks and much more. If they want to cut less than 22 percent in some of those areas, they’ll have to cut more than 22 percent in others.

According to an administration analysis of what the 22 percent cuts translate to, Kiggans is now on record supporting:


Shutting down at least two air traffic control towers in Virginia.


Jeopardizing outpatient medical care for 162,300 Virginia veterans.


Throwing up to 175,000 Virginians off food stamps and ending food assistance for another 25,000 through the Special Supplemental Nutrition Program Women, Infants and Children.


Cutting or ending Pell Grants for 162,900 Virginia college students.


Eliminating Head Start for 3,600 Virginia children and child care for another 1,300 children.


Adding at least two months to wait times for Virginia seniors seeking assistance with Social Security and Medicare.


Denying opioid treatment for more than 600 Virginians.


Ending 180 days of rail inspections per year and 1,350 fewer miles of track inspected.


Kicking 13,400 Virginia families off rental assistance.


Similar calculations can be made for the other 30 House Republicans targeted by Democrats in the 2024 elections who joined Kiggans in walking the plank. Since enactment of the clean-energy credits Republicans have now voted to repeal, for example, clean-energy projects worth some $198 billion and 77,261 jobs have moved forward in districts represented by Republicans, according to the advocacy group Climate Power…

Trump’s huge deficits funded tax cuts for the rich. Biden’s deficits are investments in the future and lifelines for struggling people.

The Republicans’ draconian plan with its deep cuts passed by one vote.

But this week, they jammed their giant, secretly negotiated debt-limit bill through the Rules Committee on a party-line vote — at 2:19 a.m. And they did it with a “deem-and-pass” rule.


Even then, after all the reversals and surrenders, the bill came within one vote of failing. The lawmaker who cast the final, deciding vote? Rep. George Santos (R-N.Y.).


How apt that this legislation, built on one broken promise after another, should be carried over the finish line by the world’s most famous liar.

Chalkbeat NY reports that Mayor Eric Adams (whose campaign was heavily funded by charter-loving billionaires) intends to cut $960 million from the budget for the city’s public schools.

The city’s education department budget would drop by nearly $960 million next school year under a more detailed budget proposal released by Mayor Eric Adams on Wednesday, though city officials did not offer specifics about the impact on individual campuses.

Two-thirds of that cut, or $652 million, is the result of Adams’ decision to reduce the city’s contribution to the education department. Another $297 million is from a drop in federal funding, which is drying up as pandemic relief programs end.

Part of the city’s cut is tied to a mandate from the mayor earlier this month calling on city agencies to cut spending, including at the education department. That raised questions about whether schools would take a hit, but on Wednesday, Adams vowed that this specific cost-saving measure “will not take a dime from classrooms.”

Instead, that reduction — totaling $325 million — will largely come from recalculations on how much the city spends in fringe benefits, such as health insurance for teachers. (Officials emphasized this would not result in a loss of benefits or other services.)

“We had to make tough choices in this budget,” Adams said Wednesday. “We had to negotiate competing needs. We realize that not everyone will be happy but that is okay because that is how you get stuff done.”

The education department’s operating budget would total about $30.5 billion next year under the mayor’s plan, down by about 3%.

Note that a large part of the savings will be funded by changes (cuts) in teachers’ health insurance.

Since the city will soon have to comply with a state law requiring class size reduction, it’s not clear how the city will pay for the additional costs of smaller classes. It is a very valuable reform, but it’s costly.

The city will also bear the cost of 14 new charters. Currently the 275 charters in the city are a heavy expense, since the city must pay their rent, even if they locate in private space. In some cases, such as Success Academy, the charter owns the space and still charges the city exorbitant rent.

The charter lobby in New York is well funded by billionaires like Michael Bloomberg and Paul Tudor Jones as a long list of Wall Street hedge funders. These elites want the state and New York City to open unlimited numbers of charter schools, despite their impact on public schools, attended by nearly 90% of students. New York City has a cap of 275 charters.

But that’s not enough for the billionaires. Governor Kathy Hochul is attentive to their needs because they supply campaign cash.

The legislature rejected her proposal to lift the caps, but she succeeded in inflicting 14 “zombie charters” on NYC. A zombie charter is one that opened but failed.

At a time of budget cuts, this decision will put more stress on the city’s public schools.

The United Federation of Teachers reacted:

Contact: UFT Press Office | press@uft.orgDick Riley | C: 917.880.5728

Alison Gendar | C: 718.490.2964

Melissa Khan | C: 646-901-1501

FOR IMMEDIATE RELEASE – Thursday, April 27, 2023

UFT Statement on the State Charter Deal

 

“The Senate and the Assembly did the right thing by rejecting the governor’s plan to lift the New York charter cap. Unfortunately, the governor listened to the demands of a handful of billionaires and revived 14 zombie charters for New York City — even though New York City has nearly 40,000 unused charter seats. Now it’s time for the governor to listen to New York parents who want accountability and transparency from the charter sector and an end to loopholes that benefit corporate charters at the expense of our public schools.”

 

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Gary Rayno of InDepth NH is a reliable guide to education politics in New Hampshire. In this post, he describes the decisions that legislators must grapple with starting this week. New Hampshire public schools and public colleges have never been adequately funded, and the state has the misfortune of having a state commissioner who doesn’t care. He homeschooled his own children, and he doesn’t understand why the state pays for public schools.

He begins:

In New Hampshire, public education is a moving target.

It is a hodgepodge of activities and systems from pre-Kindergarten to its colleges and universities.

But the one unifying force along the spectrum is the state’s minuscule financial commitment.

The state’s contributions to public education puts it in line with states like Mississippi and Louisiana although its per capita wealth averages among the highest in the country.

One district has challenged the state in court, claiming that the state does not provide enough funding for an adequate education. State Commissioner Frank Edelblut doesn’t want any new money for public schools, but he’s quite willing to spend more on vouchers (so-called “education freedom accounts”.) The state contends that only the legislature—not the court—can determine funding for the schools.

To date the program is far more expensive than Edelblut advised lawmakers it would be, about $3.3 million this biennium, when the costs to date are well north of $20 million, much of that money paying tuition subsidies to parents whose children were in private and religious schools and homeschooling programs before the EFA program began.

The program was sold as allowing low-to-moderate income parents to find the best educational environment for their child if he or she did not adapt well to the public school setting.

Tuesday the Senate Education Committee will hear three bills that would allow more students to be eligible for the program, which Edelblut told lawmakers would cost $30 million in each year of the biennium.

House Bill 367 would increase the income threshold for a child to be eligible for the program by about $9,000 for a family of four by increasing the cut from 300 percent of the federal poverty level to 350 percent.

House Bill 464 would allow children to automatically qualify if they are in foster care, military families, homeless, and transients. The cost of the change has not been determined although the bill passed the House.

And House Bill 446 would require the organization administering the program to inform parents they will lose their federal special education rights under the Individuals with Disabilities Education Act if they participate in the program.

This is part of the voucher hoax. Children with special needs lose federal right to services if they switch to a voucher school, but most of these parents don’t know it.

The Senate Finance Committee will also have to decide if the House gave the University System of New Hampshire and the Community College System of New Hampshire, too much money, too little money or enough money.

The university system had hoped to finally return to the level of funding it had more than a decade ago, before the 2011-12 legislature cut it in half.

The House approved almost the $200 million the system received before the slashing, and added a little more so tuition could remain frozen and the Whittemore Center could be upgraded.

The community college system successfully fought off a plan by the governor to merge with the university system a biennium ago but continues to face the challenge of providing education in more technical fields while enrollment decreases particularly in the more traditional areas of instruction.

But the system has continued to freeze tuition like the university system in a state where the students have the highest college debt in the country.

New Hampshire’s education system is jumbled and in flux. One thing that could make things a little easier is additional money, but the only program with open-ended funding is the EFA and that could cost the state nearly $70 million a year if all the students in private and religious schools and homeschools decide to participate.

That is almost as much money a year the university system receives and more than the community college system receives.

ProPublica, in conjunction with the Idaho Statesman, took a close at schools in Idaho, which spends less on education than any other state. Conditions for teaching and learning are terrible, in large part because the state requires a 2/3 majority to pass a bond issue. Does Idaho care about the rising generation? Does it care about its future?

Jan Bayer sank into the couch in the family room of her Bonners Ferry, Idaho, home and stared at her phone, nervously awaiting a call. Her twin teenage daughters were nearby, equally anxious.

It was election night in March 2022, and Bayer, the superintendent of the Boundary County School District in a remote part of Idaho on the Canadian border, had spent months educating voters about a bond that would raise property taxes to replace one of her district’s oldest and most dangerous buildings: Valley View Elementary School. Built just after World War II, the school was falling apart.

The walls were cracked. The pipes were disintegrating. The ceilings were water-stained. The electrical system was maxed out and the insulation was nearly nonexistent. Classrooms froze in the winter and baked in the summer. The roof, part of which had already collapsed once, was nearing the end of its lifespan. Outside, potholes pocked the parking lot and deep splits formed in warped sidewalks. The kindergarten playground, weathered from decades of brutal winters, had turned hazardous; at times, sharp screws protruded from some of the equipment, and kids routinely got splinters from the wooden crossbeams.

Most worrisome to Bayer and her staff: Kindergarten students had to cross a street multiple times a day just to navigate the sprawling six-building campus, a piecemeal attempt to add much-needed classroom space.

The bond promised to fix all that — if voters approved it.

“You’re just honestly praying for a miracle,” Bayer said. “I said a lot of prayers all day long, saying, ‘OK, we can do this. We can do this.’”

At about 8:30 p.m., a call came in from the county clerk. More than 2,000 people voted, and about 54% of them supported the bond, the clerk said. Bayer’s heart sank and she broke into tears. In Idaho, a majority wasn’t enough. The state is one of just two in the nation that require support from two-thirds of voters to pass a bond.

Bayer shared the results with the school board, school staff and the facilities committee. Over the next several hours, she received calls and messages from community members. They told her to keep fighting. So she did. The district put another bond on the ballot in August, and students rallied to support it. On Election Day, the high school football team even stood on the bridge over the Kootenai River and held yellow signs that read “Vote Yes for Kids,” hoping to persuade voters as they drove to the Boundary County Fairgrounds to cast their votes. But the second bond fared worse. Just over 40% of voters backed the new measure, which hit the ballot as residents received a notice that their property assessments were going to rise and voters were worried about tax increases. “It went down in a ball of flames,” Bayer wrote to the school board.

Boundary County School District Superintendent Jan Bayer points out that part of an exterior wall of a school building is made of glass blocks painted blue, which are not efficient for heating and cooling. The rest of the building is made of cinder blocks that came from a naval training station that was decommissioned in the 1940s.

No other state spends less on education per student than Idaho, according to a recent report from the U.S. Census Bureau, which surveys and ranks school finance systems. It also ranks last in the nation in terms of school infrastructure spending per pupil, a state report shows. So over the past several decades, rural districts across the state have faced the same challenge as Bayer: To improve or replace aging — and sometimes dangerous — facilities, they must appeal to local taxpayers and clear some of the nation’s most restrictive thresholds for school funding. Despite urgent needs, most of these efforts fail, an investigation by the Idaho Statesman and ProPublica has found. As a result, students across the state must learn amid dire conditions.

In one Idaho school, the foundation is crumbling. In another, so few bathrooms serve hundreds of kids that students have soiled themselves, according to school officials and local media. And in yet another, a portion of a roof recently failed during off-hours, sending water flooding into a classroom and bathrooms, destroying books and temporarily limiting learning space.

Since 2006, districts have mounted 217 bond attempts to remedy these types of problems and accommodate growing student populations. Had Idaho required only a majority of voters to support the measures — the threshold in most states — 83% of them would have passed. Instead, just 44% were approved, according to an analysis of bond measures and election data by the news organizations.

Please open the link and read this story. It makes you wonder whether the public cares about education and students. People complain about test scores but all too often they are unwilling to pay for an up-to-date school system. Charters and vouchers are a pointless diversion. They guarantee that the public schools attended by most students will be impoverished and under-resources.

The Florida legislature passed a universal voucher plan, meaning that the state will subsidize the tuition of every student, no matter their family income, Rich or poor. The state will hand out subsidies to rich families whose children go to elite private schools. All money deducted from public schools. Short-sighted and stupid, a giveaway to families who can afford private schools.

Currently, there are more than 400,000 students enrolled in private schools. About 80,000 may already have a voucher. Now, even those attending an exclusive school will be subsidized by the state. Homeschoolers will also be subsidized by the state, at least 20,000 in the fumigation year.

Most of the schools that take vouchers are religious and most are not accredited.

Likely new cost: 320,000 students already enrolled in private schools without a voucher plus 20,000 homeschooled kids x $7,800=$2.65 billion. And that’s without a single student now in public school asking for a voucher. A realistic estimate for the annual cost of Florida’s universal voucher would be at least $3 billion a year.

The Center for Budget and Policy Priotities notes that the Florida voucher funding is designed to reduce the funding of public schools, which currently enroll about 80-85% of the state’s children:

While voucher programs are often funded as line-item appropriations in state budgets or through private donations (which over time reduces the revenues available for education and other state priorities), this Florida voucher is actually designed to take money away from the state K-12 funding formula designated for public school districts.

Scott Maxwell of the Orlando Sentinel says that Florida’s universal voucher program is likely to blow a billion-dollar hole in the state budget. As I pointed out above, $1 billion is a low estimate. That hole in the budget will be closer to $3-4 billion, when you include the students whose parents can already afford to pay tuition.

He writes:

Florida lawmakers are about to take the biggest educational gamble in American history — financed with your tax dollars.

They want to offer every child in Florida the chance to use publicly funded vouchers at private schools that have virtually no regulation and offer no guarantee that the students will get educated.

Florida’s existing network of voucher schools is so infamously unchecked that the Orlando Sentinel has found schools employing teachers that don’t have high-school diplomas themselves. Some refuse to serve children with disabilities or gay parents. Others were such financial wrecks that they shut down in the middle of the school year, stranding students.

Flaw #1:

Voucher schools in Florida are unregulated. They can hire teachers who are not certified. They can hire teachers who never finished college. Voucher schools do not take state tests. They need not disclose their graduation rate or their curriculum. They are not overseen by state officials. Some voucher schools ignore safety codes, because they are not required to comply with them. The Orlando Sentinel conducted an investigation called “Schools Without Rules,” demonstrating that voucher schools take tax money without any oversight, transparency or accountability.

Flaw #2:

Voucher schools operate in secrecy. They are not required to report anything to the state.Not test scores, graduation rates, SAT scores, or anything else. Florida is operating on the principle of “Trust But Don’t Verify.” Public schools are held to tight accountability requirements. Voucher schools, none at all. If accountability is good for public schools, why is it unnecessary for voucher schools?

Flaw #3:

Voucher schools can discriminate against any group. Unlike public schools, voucher schools can discriminate on any grounds. They don’t have to accept students with disabilities, gay students, students who don’t speak English, or students from a religion they don’t like.

Flaw #4:

Legislators think that choice is the only accountability needed. If a parent is unhappy, make a different choice. The only choice that parents do not have is to stop paying their tax dollars to fund this sector.

There is another grievous flaw:

The Florida voucher program reduces funding for the schools that the overwhelming majority of students attend. Why does this make sense?

Maxwell says there are good voucher schools, and they should have no objection to accountability, transparency, and oversight. Maxwell recommends the following fixes for the state voucher program.

All voucher-eligible schools should be required to:

  1. Publish graduation rates and nationally accepted test scores.
  2. Hire teachers who are certified or at least have a college degree.
  3. Disclose all the curriculum being taught.
  4. Ban discrimination. (If discrimination is a key tenet of a religious organization’s belief system, they should fund that discrimination with their own money. Any group that receives public dollars should serve all the public.)

Maxwell does not address the two glaring defects of the voucher program:

1. 75-80% of the students who take vouchers already attend private schools. Why is it in the interest of Florida to pay their tuition?

2. About 60% of the students who switch from a public school to a voucher school will drop out within two years. The vast majority of voucher studies conclude that students lose ground academically when they take a voucher. Shouldn’t parents be warned of the risk that they are taking by accepting a voucher?