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Home > Publications > Public Employee Reporter > 2002 > June-July > Federal budget trickles down

Federal budget trickles down

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Proposed cuts pinch state and local budgets

This is a tough budget year at every level of government. The impact of the economic recession has been compounded by the fact that politicians at every level have given away the surplus. Add to this the increased security costs, the war on terrorism and increased Medicaid costs, and it is easy to see why public employees are facing such tough times.

Several measures are under congressional consideration that would negatively affect FPE/AFT members, including cuts in:

  • the federal unemployment payroll tax, which would require state budgets to come up with additional funding to maintain state employment services;
  • the Work Force Investment Act adult and youth programs and the Dislocated Worker program, which would result in cuts to state job training programs; and
  • disbursements from the Federal Highway trust fund, which would limit road and bridge projects and repairs.

Additionally, under Republican-sponsored welfare reform legislation, new work requirements would cause most states to lose federal welfare funds. Further, a "super waiver" would be provided to states to allow welfare recipients to take jobs at subminimum wages and waive other labor protections. Also under the proposals, states could choose to assign non-merit employees or hire contractors to provide welfare services.

"Throughout all of these proposals, the administration is seeking greater flexibility to allow for greater privatization and allow for waivers that take work away from state merit employees," warns FPE/AFT department director Steve Porter.

All FPE/AFT members are encouraged to write their members of Congress to let them know that state and local government programs, which serve their constituents, cannot sustain the cuts that have been proposed by the Bush administration. To find out who your members of Congress are, please visit the AFT Legislative Action Center.

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