The Federal Budget: Why Does it Matter to Pennsylvania?
More than 25 percent of state budgets consist of funds from the federal government, according to the Center on Budget and Policy Priorities (CBPP), a policy organization working at the federal and state levels on fiscal policy and public programs that affect low- and moderate-income families and individuals. When federal funds are cut, costs are shifted to the states. This can affect local governments’ budgets and services for vulnerable populations who need help the most.

Critical programs administered by the states and local governments that are directly affected by the level of federal funding include Medicaid, SCHIP, child care assistance, foster care and adoption assistance, child nutrition, Women Infants & Children, Head Start and others. States share the cost of these important programs, but when harsh economic conditions and lean budget years cause the purse strings to be tightened, it’s the states and their populations that are adversely affected.

“Pennsylvania gets a sizable chunk of federal money for the General Fund budget. Nearly two-thirds of this federal funding is directed to programs run under the Department of Public Welfare,” said State Sen. Gibson Armstrong, chair of the Senate Appropriations Committee.

“Some of these programs are among the fastestgrowing in the budget, making it tough for funding to keep pace with the participation rates resulting from mandated eligibility and benefits. Pennsylvania would be hard-pressed to try to get by without (federal funds).”

Federal budget advocacy by state groups like PPC is key to informing policymakers of issues that matter in the states, but that are affected by federal dollars.

“It is extremely important that there are strong state organizations engaged in educating the Congressional delegation on federal policy issues,” said Ellen Nissenbaum, Legislative Director, Center on Budget and Policy Priorities, Washington, DC. “The work of state partners is invaluable to the Center. I think it’s because of the emergence of strong state-federal partnerships that the work around the federal budget is far more effective than it ever has been.”

Nissenbaum said advocacy is key to educating consumers, too. “There’s not a lot of attention to covering the federal budget and what it means to people,” she said. “Advocacy plays a role in bringing to light why the federal budget matters in Pennsylvania and why people should care.”

Armstrong echoes the importance of groups like PPC advocating in the federal and state budget process. “At a time when there is a strong emphasis on controlling state spending, there is more intense competition for available dollars. The difficulty factor in creating a program or gaining substantially more funding for a startup program rises substantially, “Armstrong said. “(Advocates) with the most compelling, convincing, or well-timed advocacy tend to do best.”

CBPP recommends advocates get involved in the federal budget process early when “top line” decisions about overall allocations are being made. Reaching out to the state’s Congressional delegation in February (after president’s budget is unveiled) and alerting them to your organization’s priorities is a good first step. Governors, too, can be an important link in the state-federal budget advocacy chain.

When revenues shrink and overall spending increases (such as with the nation’s current defense spending), it becomes necessary to trim the budget in other places. Often the first services on the chopping block are those for vulnerable populations. It’s important that advocates understand the connection between state and federal budgets and that by getting involved in federal budget work, advocates are affecting their states’ allocations.

“While national groups like the Center provide a lot of information to policymakers, it is important that state groups like PPC be able to provide information on Pennsylvania to Pennsylvania policymakers and their constituents,” Nissenbaum said. “When these groups are able to describe federal policy from a state perspective, that information can have a direct bearing on policymakers and what their positions may be.”

Armstrong aptly sums up the role of organizations in advocacy efforts. “The increasing number of professional groups, trade associations, and advocacy groups participating in the budget process underscores this is a useful and productive avenue for involvement.”

What the budget looks like this year
According to CBPP, about one-sixth of the federal budget consists of annually appropriated domestic discretionary programs whose funding comes up for renewal every year. This includes programs such as K-12 education and housing assistance. Congress began to cut many of these programs in fiscal year 2005. The cuts got deeper in 2006 and further cuts are on the table for this year as well.

Two important federal programs for Pennsylvania’s children — the State Children’s Health Insurance Program (SCHIP) and the Food Stamp Program — are up for renewal this year.

The success of CHIP in Pennsylvania, and similar state programs nationwide, is dependent on a strong state and federal partnership. SCHIP provides the framework and the resources for the partnership. Currently, federal funds represent 68 cents of every $1 spent on CHIP coverage in Pennsylvania.

Enacted with strong bipartisan support in 1997, SCHIP is scheduled for reauthorization by Congress this year. Tremendous work in covering the uninsured has occurred in Pennsylvania over the past 10 years. Currently, CHIP covers about 163,000 children across the Commonwealth. However, more needs to be done to ensure the remaining 133,000 kids without health coverage will be protected.

SCHIP is set to expire Sept. 30 and must be renewed if funding for children’s health insurance is to continue. Pennsylvania has had great success with its CHIP program — most recently the “Cover All Kids” expansion — and relies on federal funding for the execution of the program.

Advocates across Pennsylvania have been working hand-in-hand with their counterparts in Washington to sound a drumbeat about meaningful reauthorization that will not only continue to cover those children enrolled currently, but to enroll even more eligible children who have yet to benefit from CHIP.

On June 25 Gov. Rendell, Senators Casey and Specter, Rep. Tim Holden and State Senator Tina Tartaglione spoke at a rally at the Pennsylvania Capitol in support of SCHIP. The governor and the legislators stressed the importance of fully funding the program. They also highlighted the great success of CHIP in Pennsylvania and the need for meaningful reauthorization to keep the program strong. PPC’s President and CEO Joan Benso also participated in the event as a key advocate for children’s healthcare in the Commonwealth.

In addition to legislative leaders, the media can be strong advocates, too, by taking a position supporting a particular public policy initiative. As Pennsylvania editorial boards did last year with their positive editorials calling for “Cover All Kids”/CHIP expansion legislation, newspapers this year continue to publish positive editorials and op eds calling on Congress to provide timely and meaningful SCHIP reauthorization. To date, 24 editorials and op eds have been published in newspapers from communities across the Commonwealth.

As this issue went to press, the Senate voted to authorize a $35 billion in increased funds for SCHIP spread over five years; the House voted to reauthorize $50 billion over the same period. The House and Senate versions must be reconciled before a bill can be enacted and sent to the President. The Bush Administration is recommending a veto of each bill. Without reauthorization, the program is scheduled to expire on September 30.

Timeline of the Federal Budget Process
February
The president’s budget is released.

March/April
After receiving president’s budget request, Congress holds hearings to develop its own budget resolution. In general, the Budget Committees act on their budget resolutions this month and into April stating totals for discretionary (annually appropriated) and mandatory entitlement spending (such as Medicaid). The budget resolution is supposed to be passed by April 15, but often takes longer.

May/June
Appropriations process starts at committee level.

July
Possible votes and bill markup in House and Senate committees; Congress begins consideration of appropriations.

August
Recess

Sept./Oct./Nov.
Congress finalizes budget bills and appropriations; deadline is Oct. 1 for start of new federal fiscal year.\

(Courtesy of Center on Budget and Policy Priorities; www.cbpp.org)

Policymakers Sound off on the Importance of Advocacy

PPC asked several key state and federal legislators to weigh in on the role of advocacy in policymaking. Below are responses from U.S. Sen. Bob Casey, U.S. Rep. Todd Platts and state Rep. Dwight Evans on the importance of creating and maintaining a strong advocacy presence in Pennsylvania and in Washington, DC.

How important are advocacy groups like PA Partnerships for Children in getting vital issues front and center (to media, the public and policymakers)?

Sen. Bob Casey: “Advocacy is of vital importance to educate not only policymakers, but also the public at large. Pennsylvania Partnerships for Children is doing invaluable work to advocate on issues that are close to my heart like expanding and strengthening the State Children’s Health Insurance Program (SCHIP) and improving early childhood education.

“On an issue like SCHIP where public education and outreach leads to increased signups and increased utilization, drawing public attention to an issue has a direct real-world impact.”

Rep. Todd Platts (R; 19th District of Pennsylvania): “Pennsylvania Partnerships for Children should take great pride in its efforts to improve the health, education and well-being of our children. The dedicated work of organization’s such as PPC can give a voice to causes and individuals that might otherwise go unheard and can be an effective catalyst for long-term solutions to some of our nation’s most pressing and important issues. “

State Rep. Dwight Evans (D — Philadelphia): “Forty years ago, we heard little if any discussion about the value of early childhood education or pre-K programs. Today, those topics are standard in policy discussions and certainly a priority in terms of funding. One of the reasons for that is because advocacy groups such as Pennsylvania Partnerships for Children have raised the level of dialogue about the value of investing in programs for our children even before they reach school age.”

How does advocacy play a role in federal decision-making (such as federal budget process)?

Casey: “Advocacy and constituent activism has a long tradition in the United States. Part of what we in the Senate do — and some may rightly argue that we need to do more of — is listen to our constituents. By listening to our constituents we can not only hear their views on issues, but we can also learn and identify concerns that we can work to address in Washington.”

Platts: “Our government works best when its citizens participate, no matter whether they are an individual citizen or an organized group. For government to truly be ‘of the people, by the people, for the people,’ all citizens must be active participants in the democratic process. Citizen feedback helps to inform elected officials such as myself about the real-life impact of legislation pending before Congress.”

Evans: “It’s no secret that the federal government wants the states to do more with less. Clearly, it’s to Pennsylvania’s benefit to fight for every dollar we can get from Washington. At the same time, we need to be creative in our own thinking about what we want our state to look like 20 years from now. Overall, the state’s fiscal health depends on our ability to grow Pennsylvania’s economy and it’s incumbent upon us to think creatively about how we do that. The higher film tax credit that we fought for in the 2007/08 budget is a case in point. By raising the tax credit to $75 million, Pennsylvania captured Hollywood’s attention. Now there is talk of a major studio locating here. If that happens, the potential for workers — from those in the construction trades to those who understand digital cinematography — will be tremendous.”

How has your view of the importance of advocacy changed since arriving in Washington?

Casey: “One thing that you always hear about Washington is the number of lobbyists. You don’t really realize how many are here working for this company or that trade association. The presence of this many ‘inside-the-beltway’ lobbyists increases the importance of hearing from Pennsylvania advocates. I’m committed to maintaining my focus on issues important to Pennsylvania. I’m committed to real solutions that work for people in our communities. Hearing from Pennsylvanians helps to maintain that focus.”

Platts: “I have always believed that citizens should be actively engaged with their government and that belief has only been strengthened since being elected to Congress. I commute daily from my home in York to Washington, D.C. so I can stay in regular contact with my constituents and remain grounded in the values of my local community. Now more than ever, partisanship and incivility in Congress are significant roadblocks to the advancement of sound public policy. Our citizens should demand that their elected officials perform their duties as statesman and focus on our nation’s true needs — such as the well-being of our children. The American public rightly expects and deserves no less.”

What advice would you give constituents about advocating for issues important to them?

Casey: “Stay in contact with your elected representatives. And also educate your friends and coworkers. Change does not only originate in Washington or Harrisburg. Every one of us has the ability to have a profound impact on our communities, the Commonwealth and the United States. Change is not only about changing laws. It is also about changing minds.”

Platts: “I encourage all citizens to contact their elected officials and make sure their voices are heard on the issues that matter to them. Such communication is a vital means of keeping elected officials well informed about the views and concerns of the people they serve. When contacting an official, it can be helpful if you are very specific about what you are seeking, such as support for a certain bill or funding for a certain program. It is especially important that you share the basis for your position. In other words, the ‘why’ behind your support for or opposition to a specific proposal or piece of legislation.”

Evans: “From my perspective, advocacy groups such as PA Partnerships for Children can play a vital role if they define their issues in a clear and specific manner. The media, the public and policymakers are bombarded with so much information each day, it can be difficult to determine what is most important. In my career, I have found that the most effective and successful advocacy groups understand the challenge of delivering their message concisely. Those groups that do it well tend to get the attention of the press, public and policymakers.”

What’s the best way to be heard by policymakers?

Platts: “There are a variety of ways to ensure that your voice is heard. My office receives approximately 30,000 letters and e-mails from constituents each year, not including the telephone calls and individual meetings that we participate in on a daily basis. Citizens should choose the means of communication that is most comfortable for them and get engaged.”

Evans: “Be clear. Be concise. Be honest about what you need both in terms of actual dollars or other public support. Every organization rightfully believes that its mission is most important. But the reality is that resources are limited and we have to make choices. I think groups that are well-prepared with their presentations, whether at a press conference or legislative committee meeting, will find they get the most support.”

PPC: Thank you gentlemen!