Although, in the short term, we can be thankful that Pell grants continue to be funded under the deal, we must watch the long-term impacts. That’s because there’s a strong ripple effect: if the coming federal cuts adversely impact California’s revenue stream, then statewide trigger cuts could be generated, leading to mid-year cuts to the CSU in the millions, beyond the $650 million that has already been cut this year alone.
Above and beyond the question of CSU impacts, the bigger issue is that this legislation is morally wrong. It is indefensible to do nothing to help working families, and this package does not end the threat to the millions of children and seniors who rely on Medicaid and Medicare for their healthcare or the workers who care for them. As Congresswoman Doris Matsui (D-Sacramento) said as she voted against this bill last Monday, she was not able to support this deal because of the long-term negative consequences it could have for seniors, the middle class, and the economy.
The agreement is indeed a raw deal for working people and the 25 million Americans who are still looking for work. Non-defense-related discretionary spending cuts will affect the nation’s investment in infrastructure, education and other programs on which millions of Americans depend. This deal was a last-ditch attempt to avert financial disaster, but it by no means secures the future of Medicaid, Medicare or Social Security. The immediate spending caps, along with the process laid out in the legislation—that is, creating a bi-partisan committee responsible for making future deficit reductions by the end of 2011—could lead to massive discretionary spending cuts while also potentially gutting such programs as Medicaid, Medicare and Social Security.
With the economy still struggling, working families are fed up with stubborn partisan politics that create gridlock in Congress. Raising the debt ceiling should never have been tied to a deficit reduction bill in the first place. Congress has routinely raised the debt limit for decades. This year, extremist Republicans held our nation’s economic future hostage so they could push their cuts-only philosophy in a deficit reduction bill. Throughout the drawn-out debate over the debt agreement, Congressional Republicans showed that their priorities are on protecting tax giveaways to corporations and millionaires.
We need a better vision of America, where we can work for a living, support our families, and retire with dignity. Our elected leaders now must focus on creating good jobs. The best way to help our economy recover is to put America back to work. This should be our leaders’ top priority.
--Pat Gantt, President, CSU Employees Union
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