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Group Warns that Federal Budget Cuts Would Cost the State of Alabama

By Brandon Moseley
Alabama Political Reporter

A group called Arise Citizens’ Policy Project released a statement warning of the loss of federal funds for Alabama if the nation were to implement the budget passed by the U.S. House of Representatives.

They point to a new study released by the Center on Budget and Policy Priorities (CBPP), which claims that the state of Alabama would, “lose $393 million of federal funds for education, public safety, environmental protection and other public services in 2014 under the U.S. House-passed budget.” They warn that according to the CBPP study cutting the federal budget without raising taxes or other revenues could cost the state of Alabama more than $3.5 billion between now and 2021.

They also warned against repealing the Patient Protection and Affordable Care Act (commonly referred to as Obamacare).  The groups warns that the budget, sponsored by U.S. Rep. Paul Ryan (R) from Wisconsin would slash federal Medicaid funds by 34 percent by 2022.

The group also is concerned that the Republican House budget would cut funding for highways and other transportation projects. They warn that, “By 2021, federal aid to states and localities under the Ryan budget likely would be at less than half the average of the last 35 years.”

ACPP executive director Kimble Forrister said, “Deficit reduction shouldn’t come at the expense of our state’s economy and our children’s future.  Good schools, safe roads and a well-functioning health care system are vital tools for Alabama to create jobs and make our state a better place for everyone to live and work. We should do everything we can to protect them.”

The group is calling for massive tax increases to balance the U.S. budget deficit.  According to usdebtclock.org the federal budget deficit is currently running $1.27 trillion a year.  Total federal income taxes collected are only $1.11 trillion a year.  The President’s proposed tax increase on entrepreneurs and small businesses while politically popular with some in his base would do very little for the budget deficit.  In fact if you were able to double federal personal income tax collections across the board the budget would still not be balanced.

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The group also does not factor in how the Alabama economy would be affected if the federal government took $hundreds of millions of dollars out of the Alabama economy through massive new tax increases or the negative effect that higher taxes would have on job creation, private sector investment, economic growth, and family savings rates.

The Arise Citizens’ Policy Project is a nonprofit statewide coalition of 150 congregations and organizations promoting public policies that improve the lives of low-income Alabamians.

The CBPP has received millions of dollars in backing from leftist billionaire George Soros and is considered by many conservative sources to have a liberal bias.

To read the CBPP’s full report, “Deficit-Reduction Package That Lacks Significant Revenues Would Shift Very Substantial Costs to States and Localities,” visit their web site:

http://www.cbpp.org/cms/index.cfm?fa=view&id=3816.

Written By

Brandon Moseley is a former reporter at the Alabama Political Reporter.

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