Under current law, the federal budget includes a $1 trillion cut to Pentagon spending over the next ten years. However, this victory could be undone any day. Some members of Congress are still looking for ways to reallocate more money to the Pentagon and reduce the size of these cuts. We have reason to celebrate, as Congress has accepted that Pentagon spending will be cut at least $500 billion in the next decade, but the debate still rages over whether to keep, reduce or entirely eliminate the other $500 billion in cuts.

How Did We Get Here

Budget Control Act of 2011

In August 2011, in exchange for an increase in the debt limit, Congress passed this legislation which included $1.2 trillion in discretionary spending cuts over the next ten years, from 2013-2021. The cuts were evenly split between pentagon spending, with war spending exempt, and domestic discretionary spending, which includes programs like the National Park Service and Low-Income Housing Vouchers. The Budget Control Act (BCA) also set up a Supercommittee, a bipartisan group of members of congress brought together to craft an alternative to $1.2 trillion in cuts. The Supercommittee failed to reach a compromise, and thus triggered the automatic across-the-board cuts known as sequestration.

American Tax Relief Act of 2012

With no time to spare, Congress passed the American Tax Relief Act of 2012 (ATRA) on January 1, 2013. This bill created $620 billion of new revenue over ten years, mainly by raising taxes for individuals with incomes over $400,000 (and households over $450,000). The deal also extended unemployment insurance for one year and postponed sequestration until March 1. Although this “fiscal cliff deal” dealt with some immediate issues, it failed to permanently address other issues, like sequestration.

Sequestration

Sequestration, or the automatic across the board cuts, created under the BCA began on March 1, 2013. This indiscriminate mechanism automatically cuts all discretionary spending by $1.2 trillion over the next ten years, split evenly between pentagon and domestic spending. Many low-income programs are exempt, but some critical human services are not, and Medicare spending is cut by 2 percent.

Continuing Resolution

Because Congress has not passed a budget in four years, federal programs have been funded by temporary spending measures, or Continuing Resolutions (CR). Congress passed a CR for FY13 that was signed into law on March 26, 2013, the day before the latest CR was set to expire and three weeks after sequestration went into effect.

House Budget

The House of Representatives passed the budget authored by Rep. Paul Ryan (WI) on March 21, 2013. This budget repealed sequestration for the Department of Defense, while drastically cutting vital domestic human needs programs.

Senate Budget

The Senate passed a budget authored by Sen. Patty Murray (WA) on March 23, 2013. It was the first budget to pass the Senate in four years. Senator Murray’s budget replaces sequestration in its entirety and cuts $240 billion from defense.

President’s Fiscal Year 2014 Budget

President Obama released his FY14 budget on April 10, 2013, almost 2 months late. This $1.8 trillion dollar package replaced sequestration in its entirety through a combination of revenue increases and spending cuts.

What’s Next?

The concessions made in President Obama’s budget (mainly on entitlement reform and Pentagon spending) set the stage for the next round of debates on the budget. There is potential for a grand bargain scenario, a 10 year bipartisan agreement that would ideally replace sequestration and reduce the deficit through a combination of spending cuts and revenue increases.

On the hill, we are hearing that entitlement reform coupled with changes in the tax code will be a major part of any such grand bargain scenario. Chances of the House and Senate going to conference on their budget resolutions seem slim, although recently, Senate democrats have been pushing for a return to regular order and a conference on the budget. The approaching debt ceiling deadline, once considered to be the biggest incentive for a bargain, may not prove as such. With default now pushed back from May to October, the likelihood of the debt ceiling limit forcing a grand or mini bargain seems slim. Democrats generally support a clean bill raising the debt limit, while Republicans will argue for further spending reductions to be attached to the debt limit legislation.

Even though the House and Senate have not reconciled their budgets, in mid-May, the House will begin their appropriations process, the process through which Congress allocates money to different agencies. The House plans to mark-up appropriations at $967 billion, while the Senate is sticking to the larger amount of $1.058 trillion. This $91 billion discrepancy opens the opportunity for a wide spectrum of budget deals, from “good” to “bad,” and the negotiations continue.

That is why it is so important YOU stay engaged and encourage your member of congress to maintain support for a $1 trillion cut to the Pentagon.

For a printable PDF of this document, click here.

May 8, 2013

The federal budget is a moral document that reflects and shapes our country’s priorities. Congress should craft it based on the needs of all. In Proverbs (31.9) we are reminded to “Speak up, judge righteously, champion the poor and the needy.” Significant strides have been made in reducing the federal deficit, and while we must continue in this task and replace the harmful cuts of sequestration, the federal budget should reflect a government that provides hope, opportunity, and a place at the table for all, especially for poor and hungry people.

The Interreligious Working Group on Domestic Human Needs (DHN) advocates for a just and sustainable budget – one that protects critical programs for the most vulnerable among us, ensures the long-term fiscal viability of the country, and provides future opportunity to those in most need. DHN’s budget priorities are grounded in three values that together ensure a just foundation upon which to strengthen the economy and our democracy.

1.     Shared Commitment to Meeting Immediate Needs for the Most Vulnerable: The faith community is committed to serving vulnerable populations, but we need government action to end hunger and poverty in the United States. With the unemployment rate still unsustainably high, and even higher for minorities, thousands of households are left with no place to call “home,” and families in every community are struggling to meet basic needs. We must not neglect the very programs that have allowed these families to survive the recession and live in dignity.  Congress has the responsibility, even as it continues to pursue long-term deficit reduction, to adequately fund critical human needs and social service programs; it is both a moral issue and an economic necessity.  

2.     Economic Opportunity and Justice for All: Economic opportunity is a value that defines our nation, but it continues to go unrealized as many people are left out of the recovery.  As President Obama stated in his 2013 State of the Union Address, “But we gather here knowing that there are millions of Americans whose hard work and dedication have not yet been rewarded. Our economy is adding jobs – but too many people still can’t find full-time employment. Corporate profits have rocketed to all-time highs – but for more than a decade, wages and incomes have barely budged.” Even before the recession, too many families were struggling to make ends meet, unable to lift themselves out of poverty. The federal budget must not only respond to families in crisis, it also must strengthen our long-term commitment to meeting human needs, expanding opportunity for all, and providing social service programs to address the underlying causes of poverty and inequality that afflict our nation. We urge Congress to make the long-term investments needed to reduce and eventually end poverty. This requires access to high quality education, sustainable jobs with living wages, and policies that help families build assets.  

3.     Intergenerational Responsibility: The gap between revenues and spending coupled with high health care costs and demographic shifts threatens our fiscal future. We cannot leave our children a legacy of rising debt, but neither can we leave them a legacy of rising poverty and diminished opportunities. Educational programs, adequate housing, health care, nutrition programs, and community services are vital tools for empowering individuals to overcome poverty.  Congress must make it a priority of ongoing budget negotiations to protect and equip the most vulnerable among us. We must pay for the services and investments our country needs through an equitable tax system. As the economy continues to recover, we urge Congress to craft a federal budget that balances long-term fiscal discipline with a plan to not only sustain critical services for those facing hunger and poverty but also with a vision and strategy to end them both.

OUR BUDGET PRIORITIES

1.     Protect programs that serve the most vulnerable.
·      Social safety net programs such as nutrition and housing programs, unemployment insurance, and refundable tax credits, which make up only 13 percent of the federal budget, are indispensable and must be preserved. Cuts to these programs threaten the stability of our communities and do little to reduce the deficit.
·      Low-income programs help sustain recovery by increasing consumer demand and supporting local economies. Cuts to these programs, however, weaken not only the economy but also the lives that depend upon them.  

2.     Invest in the Economy by:
·      Creating good, sustainable jobs, emphasizing public/private partnerships where possible;
·      Focusing job training and job creation on the individuals and distressed communities hardest hit by the recession and on industries that are most needed for this country’s future, including health care, renewable energy, infrastructure, education, and childcare;
·      Expanding workplace protections so that all individuals can know the dignity of a good job; and
·      Preparing the next generation of workers by improving child welfare, child support programs, low-income tax credits, and education.  

3.     Take a balanced and responsible approach to deficit reduction that:
·       Replaces the harmful consequences of sequestration with a balanced approach that includes responsible spending cuts and new revenues;
·       Recognizes that under current law we have enacted $2.5 trillion of deficit reduction, over half the amount recommended to stabilize the debt, and that even without including sequestration cuts 72 percent of all deficit reduction enacted over the past two years has come from spending cuts. Non-defense discretionary spending makes up a fraction of the federal budget, but has provided the majority of savings achieved;
·       Gives scrutiny to both military and non-military spending;
·       Does not disproportionately rely on spending cuts over revenues; and
·       Preserves the integrity of safety net programs — like Medicaid and SNAP — to ensure that poor and middle income families are able to meet their most basic needs.

Congress must craft the federal budget as a moral document to ensure that all are able to live in dignity and participate in the nation’s economy; that all federal programs — military and non-military — are examined for their efficient and effective responses to the actual needs of the nation; and that those whose income and wealth make them most able to support the shared needs of the whole society are called upon to do so. Our faith traditions command us to look after those who are most vulnerable to the nation’s action or inaction. We urge you to do the same.

American Friends Service Committee
Bread for the World
Church of the Brethren
Disciples Justice Action Network
The Episcopal Church
Faithful Reform in Health Care
Friends Committee on National Legislation
Jewish Council for Public Affairs
Islamic Society of North America
Mennonite Central Committee U.S. Washington Office
National Advocacy Center of the Sisters of the Good Shepherd
National Council of Jewish Women
NETWORK, A National Catholic Social Justice Lobby
Office of Social Justice, Christian Reformed Church
Presbyterian Church (U.S.A.)
Sisters of Mercy of the Americas Institute Justice Team
Union for Reform Judaism
Unitarian Universalist Association
United Methodist Church – General Board of Church and Society

May 6, 2013

Dear Member of Congress:

We, the undersigned organizations, urge you to oppose the so-called Working Families Flexibility Act of 2013 (H.R. 1406), a smoke-and-mirrors bill that offers a pay cut for workers without any guaranteed flexibility or time off to care for their families or themselves. As members of Congress on both sides of the aisle have acknowledged, people today are struggling to meet the demands of job and family, as well as to make ends meet. Americans urgently need lawmakers to take the next step on the road to a family friendly nation. But H.R. 1406 is not what the nation needs. It is, at best, an empty promise and it would cause considerably more harm than good.

The Working Families Flexibility Act offers a false choice between time and pay. The bill’s supporters claim H.R. 1406 would give hourly workers more flexibility and time with their loved ones by allowing them to choose paid time off, rather than time-and-a-half wages, as compensation for working more than 40 hours in one week (“comp time”). But the irony is that workers will only get more time with their families after they’ve spent long hours away at work. And there is nothing in H.R. 1406 that guarantees that workers will be able to use the comp time they have earned when they need it.

The worker flexibility offered by H.R. 1406 is nothing more than a mirage. That’s because this proposal gives the employer, not the employee, the “flexibility” to decide when and even if comp time can be used. The bill permits the employer to deny the request entirely if the employee’s use of comp time would “unduly disrupt” operations or to grant leave on a day other than the day requested by the employee. This means that H.R. 1406 provides no guarant ee that workers can use their earned time when a child falls ill, to attend a parent-teacher conference, or to help an aging parent settle in to a nursing home. Employers can veto an employee’s request to use comp time even in cases of urgent need.

H.R. 14 06 would put workers at very real risk and provide s an interest - free loan to employers. An employee who does not accept comp time could be penalized with fewer hours, bad shifts and loss of overtime hours. And because it is cheaper to provide comp time tha n to pay overtime wages, there is a significant incentive for employers to hire fewer people and rely on overtime hours – paid for in future comp time – to get work done. It would permit employers to defer compensation for unused comp time for as long as 1 3 months, creating an interest - free loan for employers and hardships for workers.

H.R. 1406 provides few protections for workers and no additional resources to the U.S. Department of Labor for education, investigations and enforcement. While this bill add s significant new provisions to the Fair Labor Standards Act (FLSA), it provides no additional funds for the education and enforcement efforts the new provisions will require. W orkers would have few remedies in cases of employer misconduct or bankruptcy. The problem of wage theft (the non-payment or underpayment of wages for hours worked) would be exacerbated by making it easier for employers to avoid overtime compensation obligations.

The Fair Labor Standards Act (FLSA) currently allows employers to provide workers with flexibility and time off without compromising their right to be paid fairly for the hours they work. The types of flexibility allowable under the FLSA include alternative start and end times, compressed or variable work hours within a week, split shifts, work at multiple locations and paid or unpaid time off. The proponents of H.R. 1406 set up a false dichotomy that would force workers to choose between flexibility and overtime pay when, in reality, the FLSA does nothing to prevent employers from offering both.

Instead of wasting time on smoke and mirrors, Congress should focus on policy solutions that have been proven to work. We urge Congress to adopt policies that will provide families with the economic security and the time that they need:

• The Healthy Families Act (H.R. 1286/S. 631), which makes earned paid sick days available to millions of workers;
• Paid family and medical leave insurance modeled on successful state programs in California and New Jersey;
• Expanded access to the FMLA f or more workers for more reasons, and so parents could, in fact, have the time they need to attend parent-teacher conferences without risking their jobs;
• The Fair Minimum Wage Act (H.R. 1010 /S. 460) which brings the minimum wage back to a reasonable level and, in so doing, provides businesses with customers, improve s our economy, and help local s communities thrive;
• The Paycheck Fairness Act (H.R. 377/S. 84), which helps close the gender-based wage gap; and
• Measures to encourage fairer and more predictable work hours and prohibit mandatory overtime.

Workers simply should not have to put in extra time beyond a 40 - hour week and forgo pay to earn time to care for themselves or their loved ones. We urge Congress to reject H.R. 1406 and instead adopt family friendly policies that provide true flexibility for working families, not an empty promise that would make life appreciably harder for families that are already struggling.

Sincerely,

National Organizations

National Partnership for Women & Families
9to5
A Better Balance: The Work and Family Legal Center
African American Ministers In Action (AAMIA)
African American Ministers Leadership Council (AAMLC)
American Association of University Women (AAUW)
American Federation of Government Employees (AFGE)
AFL-CIO American Federation of State, County and Municipal Employees (AFSCME)
American Federation of Teachers, AFL-CIO
The Arc
Business and Professional Women's Foundation
Campaign for Community Change
Center for Law and Social Policy (CLASP)
Coalition of Labor Union Women
Coalition on Human Needs
Demos
Direct Care Alliance
Equal Rights Advocates
The Every Child Matters Education Fund
Family Equality Council
Family Values @ Work Consortium
Feminist Majority
Food Chain Workers Alliance
Friends Committee on National Legislation
Half in Ten
HIV Prevention Justice Alliance
Human Rights Campaign
Interfaith Worker Justice
Jewish Women International
Jobs with Justice/American Rights at Work
Labor Council for Latin American Advancement
Labor Project for Working Families
Leadership Center for the Common Good
The Leadership Conference on Civil and Human Rights
Legal Momentum
LULAC
Main Street Alliance
Maternity Care Coalition
MomsRising
NAACP
National Action Network
National Association of Social Workers
National Consumers League
National Council of Jewish Women
National Council of La Raza (NCLR)
National Council of Women's Organizations
National Domestic Workers Alliance
National Employment Law Project
National Employment Lawyers Association (NELA)
National Hispanic Council on Aging
National Latina Institute for Reproductive Health (NLIRH)
National Organization for Women (NOW)
National Primitive Baptist Convention, USA, Inc.
National Research Center for Women & Families
National Women's Law Center
NETWORK, A National Catholic Social Justice Lobby
Partnership for Working Families
People For the American Way
PICO National Network
Progressive National Baptist Convention, Inc. (PNBC)
Progressive States Network
Restaurant Opportunities Centers United
RESULTS
Service Employees International Union (SEIU)
United Steelworkers (USW)
USAction
VESSELS
Wider Opportunities for Women
Women Employed
Working America

State and Local Organizations

Arkansas
Little Rock National Organization for Women Northwest Arkansas Workers' Justice Center

Arizona
Sun City/West Valley National Organization for Women

California
9to5
California Center on Policy Initiatives
Legal Aid Society-Employment Law Center

Colorado
9to5 Colorado
Colorado Fiscal Institute
Colorado Organization for Latina Opportunity and Reproductive Rights (COLOR)
Colorado Progressive Coalition
FRESC: Good Jobs, Strong Communities
Interfaith Worker Justice Committee of Colorado
NAACP Colorado/Montana/Wyoming State Conference

Connecticut
Connecticut Working Families Party

District of Columbia
D.C. Employment Justice Center

Florida
Broward County Chapter of the National Organization for Women
Farmworker Association of Florida
Florida National Organization for Women
Organize Now
Palm Beach County National Organization for Women
Pasco National Organization for Women
Tampa Chapter of the National Organization for Women

Georgia
9to5 Atlanta
Victory for the World Church

Illinois
AIDS Foundation of Chicago
Chicago Chapter Coalition of Labor Union Women
Human Action Community Organization (HACO)
Illinois State CLUW
SEIU HealthCare Illinois & Indiana

Indiana
Central Indiana CLUW Chapter
Central Indiana Labor Council
Community, Faith & Labor Coalition

Maine
Maine Women's Lobby

Maryland
Baltimore National Organization for Women
Job Opportunities Task Force
Public Justice Center

Massachusetts
Jewish Alliance for Law & Social Action
Massachusetts Paid Leave Coalition
St. Paul A.M.E. Church

Michigan
Wayne County Chapter of National Organization for Women

Minnesota
Uptown National Organization for Women

Mississippi
The Mississippi Workers' Center for Human Rights

New Hampshire
NH Sisters of Solidarity
NH National Alliance for Direct Support Professionals

New Jersey
Grace Cathedral Family Worship Center, Inc.
Greater New Jersey CLUW Chapter
Hope House Family Life Ministry
New Jersey Citizen Action
New Jersey Tenants Organization
Northern NJ Chapter of National Organization for Women

New York
Catalyst
Gay Men's Health Crisis (GMHC)
New York Paid Leave Coalition
New York State Nurses Association
Progressive States Network
Rockland County Chapter of National Organization for Women

North Carolina
Fayetteville National Organization for Women
North Carolina Justice Center

Ohio
Akron Area National Organization for Women
National Organization for Women, Greater Cleveland Chapter
Ohio National Organization for Women
Southeast Seventh-day Adventist Church
Toledo Chapter, National Organization for Women
Woodland Christian Church (Disciples of Christ)
Zion Hill Missionary Baptist Church

Oregon
Central Oregon Coast National Organization for Women
Family Forward Oregon

Pennsylvania
Micah Leadership Council
New Hope Baptist Church
Ni-ta-nee National Organization for Women
Northeast Williamsport National Organization for Women
PathWays PA
Pennsylvania Association of Staff Nurses & Allied Professionals (PASNAP)
Pennsylvania Council of Churches
Philadelphia Coalition of Labor Union Women
Pittsburgh UNITED
Women's Law Project

Texas
Equal Justice Center
North Dallas National Organization for Women
Workers Defense Project

Vermont
Voices for Vermont’s Children

Virginia
Charlottesville Chapter of the National Organization for Women (CNOW)
NoVA National Organization for Women
Vienna Area National Organization for Women
Virginia National Organization for Women

Washington
Puget Sound Advocates for Retirement Action
Thurston County Chapter, National Organization for Women
WA State National Organization for Women

Wisconsin
9to5 Milwaukee
SEIU HealthCare Wisconsin
Wisconsin National Organization for Women
Workers' Rights Center

May 3, 2013

As people of faith, we continue to be concerned about our country’s slow economic recovery. With this month’s release of unemployment rates, we see yet another sign that while economists may say that the recession has ended, the reality of unemployment and under-employment remains true for millions of Americans—particularly those often left on the margins of the conversation about economic recovery.

The unemployment rate in the month of April decreased to 7.5%. While the total jobless number is 11.7 million, 165,000 jobs were created in April. Still there remains a startling 4.4 million who are long term unemployed (those jobless for 27 weeks or more) — 37.4% of the unemployed population. Among specific worker groups the unemployment for adult men was 7.1%, adult women 6.7%, whites 6.7%, blacks 13.2%, Hispanics 9%, and Asians 5.1%.

It used to be that if you worked hard and went to school, upon graduation (be it from high school or college), you could find a job and be well on your way to gainful employment. Yet in recent years, one of the groups most deeply affected by the recession and the trickling recovery is teenage and young adult workers aged 16-24. As it turns out, the struggle for younger workers to find a job started long before the most recent recession. According to the April 2013 Center for American Progress Study, “The High Cost of Youth Unemployment, “Over the past several decades, employment and labor-force participation among Americans ages 16-24 have declined, while the unemployment rate for this group has risen. During that same time period, these employment measures have remained stable or even improved for Americans in the prime working age group of 25-54, indicating that the youth-employment problem cannot be attributed solely to a worsening economy.”

While the worsening economy is not solely to blame, it was the recent recession that dramatically worsened employment opportunities for younger workers. Last month, the Wall Street Journal noted, “When the recession began in December, 2007, 59.2% of the under-25 population was in the labor force, meaning they were either working or looking for work. Today, that figure has fallen to 54.55. That may not sound like a big drop, but it makes a huge difference. If the so-called participation rate had remained unchanged, there would be 1.8 million more young people in the labor force today than there actually are.” This problem still persists through the recovery. Just this month the unemployment rate for 16-19 year-olds is 24.1% and 20-24 year olds is 13.1%.

When you dig down deeper into the sub-populations of young workers, statistics suggest that minority youth and young workers with lower levels of education are experiencing even larger occurrences of unemployment. A March 2013 Bureau of Labor Statistics report on America’s youth at 25 found that, “By their 26th birthday, 5 percent of youth who had not received a high school diploma, had never held a job since the time they turned 18. Of all jobs held by high school dropouts since age 18, nearly two-thirds lasted less than a year…Those with more education were more likely to be employed in civilian jobs and less likely to be out of the labor force.” A Center for American Progress study states, “Unemployment is a major problem for young Americans in general, but it’s an even bigger problem for young people of color. While the overall unemployment rate for teenagers is 25.1 percent, the unemployment rate for black teens is 43.1 percent. And fully half of black males ages 16-19 are looking for work but unable to find a job.”

The long-term effects of unemployment and underemployment among young workers are quite striking. The Center for American Progress states that, “A young person who has been unemployed for six months can expect to earn about $22,000 less over the next 10 years that they could have expected to earn had they not experienced a lengthy period of unemployment.” This is on top of the mounting costs for student loans, healthcare, housing, and child care.

As we consider these monthly reflections of our economy’s health, we remind our elected officials that they must act now on legislation that aims to create jobs and strengthen our economy for those who are at greatest risk of impoverishment and hardship, especially young workers. As scripture tells us, “For I know well the plans I have in mind for you, says the LORD, plans for your welfare, not for woe! Plans to give you a future full of hope.”Jeremiah 29:11

You can find DHN’s Jobs Statement of Principles here.

American Friends Service Committee

Bread for the World

Church of the Brethren

Disciples Justice Action Network

Friends Committee on National Legislation

Interfaith Worker Justice

Islamic Society of North America

Jewish Council for Public Affairs

The Jewish Federations of North America

Mennonite Central Committee U.S. Washington Office

National Advocacy Center of the Sisters of the Good Shepherd

National Council of Churches

National Council of Jewish Women

NETWORK, A National Catholic Social Justice Lobby

The Office of Social Justice of the Christian Reformed Church

Presbyterian Church (U.S.A.)

Sisters of Mercy of the Americas, Institute Justice Team

Union for Reform Judaism

The Unitarian Universalist Association of Congregations

United Church of Christ Justice and Witness Ministries

The United Methodist Church General Board of Church and Society

May 3, 2013

The Honorable Barbara Mikulski
Chair
Committee on Appropriations
U.S. Senate
Washington, D.C. 20510

The Honorable Richard Shelby
Ranking Member
Committee on Appropriations
U.S. Senate
Washington, D.C. 20515

The Honorable Harold Rogers
Chair
Committee on Appropriations
U.S. House of Representatives
Washington, D.C. 20510

The Honorable Nita Lowey
Ranking Member
Committee on Appropriations
U.S. House of Representatives
Washington, D.C. 20515

Dear Chair Mikulski, Vice Chair Shelby, Chair Rogers, and Ranking Member Lowey:

The organizations signed below - a list that includes 2,422 national, state, and local business, transportation, housing and community development, faith-based and civil rights organizations, as well as state and local officials in municipal, tribal and state governments - urge you to increase the 302(b) allocation to the Subcommittee on Transportation, Housing and Urban Development, and Related Agencies (THUD) to the highest possible level in fiscal year (FY) 2014.

The THUD allocation uniquely promotes the well-being of our home communities by providing essential seed capital and program funding that enables public and private partners to build critical transportation infrastructure, spur economic development in communities, and help more than 5 million seniors, people with disabilities, and other families to afford stable housing. Through these investments, Congress supports small-business job creation, expands our nation’s infrastructure capacity, supports economic recovery and growth, reduces homelessness and housing hardships, and promotes lasting community and family economic success.

In these tight times, the THUD bill’s investments yield high rates of social and economic return, and an adequate THUD allocation should be a high priority. Yet these investments have been cut sharply in recent years. Even before sequestration, the FY 2013 302(b) allocation ($51.8 billion in budget authority) was 24 percent less than the FY 2010 enacted level ($67.9 billion). Because of these cuts, more than 140,000 road, bridge, and transit projects have been put in jeopardy at the cost of hundreds of thousands of jobs; federal support for the production and preservation of affordable housing has been slashed, which is likely to result in more than 100,000 low-income families losing rental assistance and recent progress in reducing chronic homelessness being reversed.

To support an increased THUD 302(b) allocation, we urge the Committees to continue the practice of directing revenues generated within the Department of Transportation and revenues generated within the Department of Housing and Urban Development to programs administered by those departments.

Each undersigned organization recognizes that to build economically vibrant, healthy, and stable communities that families of all income levels can call home, no single aspect of the THUD budget can be ignored. As members of the Appropriations Committees, and more importantly as elected representatives of your hometowns, we urge you to take a stand for investing in the success of America’s communities by increasing the 302(b) allocation to the Transportation, Housing and Urban Development, and Related Agencies Subcommittee to the highest possible level in FY 2014.

Click here for a PDF version of this letter, including a full list of all 2,422 signers.

May 3, 2013

The Honorable Tom Udall
United States Senate
Washington, D.C.20510

The Honorable Jared Polis
U.S. House of Representatives
Washington, DC 20515

Dear Senator Udall and Representative Polis:

The undersigned organizations, which share a strong interest in and commitment to equity in education, the college or career readiness of youth, and the health and wellbeing of children and families, offer our wholehearted support for the Pregnant and Parenting Students Access to Education Act. Your legislation will help states and local school districts across the nation to establish and fund policies and practices that are supportive of pregnant and parenting youth, so they can stay in school and graduate ready for college or careers.

Teen pregnancy and birth rates have declined by 42 percent and 49 percent respectively since the early 1990s and are now at record low levels. There has been universal progress in all states and among all ethnic and racial groups. However, it is still the case that nearly 3 in 10 girls in the U.S. become pregnant at least once by age 20 and the figure is even higher among Latinas (44 percent) and African Americans (48 percent). There are geographic variations as well - in general Southern/Southwest states have higher teen pregnancy and birth rates, and in rural counties the teen birth rate is nearly one-third higher compared to the rest of the country, regardless of age or race/ethnicity. Despite the dramatic progress, the  United States has the highest rate of teen pregnancy in the developed world - 750,000 teen pregnancies each year. Pregnancy and parenting significantly increase a student's risk of dropping out of school: only
about half (51 percent) of women who gave birth while a teen have a high school diploma compared to 89 percent of women who did not have a teen birth. In a nationwide survey of dropout youth, 33 percent of female dropouts and almost 20 percent of male dropouts said that becoming a parent was a major factor in their decision to leave school.

These alarming statistics stem from the many barriers that pregnant and parenting teens face in enrolling, attending, and succeeding in school, such as: discrimination by their schools in violation of Title IX of the Education Amendments of 1972; the failure of states, school districts, and schools to excuse students for pregnancy- and child-birth-related absences or to assist them in maintaining academic progress; the challenge of juggling schoolwork with parenting responsibilities; and the lack of access to affordable, quality child care, transportation, and other critical services.

The dropout crisis experienced by this group of students has severe short- and long-term consequences for the economic success and well-being of their families and communities, as well as our nation. Female dropouts are especially likely to be unemployed, to earn low wages if they do get jobs, and - as a result - to have to rely on public support programs. Ensuring the success of pregnant and parenting students is critical, not only for them but also for their children, who will be more likely to eventually drop out if their parents have done so. Accordingly, providing pregnant and parenting students with the supports they need to stay in school is an essential component of any serious effort to reduce family poverty and will help to ensure that more infants and toddlers have strong early childhood experiences.

And with the proper resources, this can be done. A few school districts are undertaking effective efforts to engage and re-engage pregnant and parenting students by implementing voluntary programs that provide academic and support services, which result in students' academic success. Providing supports for pregnant and parenting students can go a long way toward improving high school graduation rates, especially because pregnant and parenting students often are highly motivated. In the same nationwide survey of dropout youth referenced above, those who left school to care for a family member or because they became a parent were more likely than any other group of dropouts to say they would have worked harder if their schools had demanded more of them and provided the necessary support.

The Pregnant and Parenting Students Access to Education Act will authorize the Secretary of Education to establish a formula grant program to State educational agencies, with competitive subgrants from States to local educational agencies (LEAs) to promote the educational success of pregnant and parenting students. States can use these funds for policy development and training and technical assistance to LEAs. LEAs can use their funds for policy development, training, strategic partnerships with public agencies and service providers, and direct services to pregnant and parenting students, such as academic counseling, case management, child care and transportation assistance, health and social service referrals, and parenting, life skills, and healthy relationships education. The Secretary of Education will collect and report data annually on pregnant and parenting students, including their graduation rates, and will conduct a rigorous evaluation of the programs funded by the Act.

Senator Udall and Representative Polis, thank you for your leadership in working to improve the educational outcomes and financial security of pregnant and parenting students - and, by extension, their children. We encourage other Members of Congress to join in this important effort.

We look forward to the enactment of the provisions of the Pregnant and Parenting Students Access to Education Act, and further urge Congress to include the bill's provisions as part of the reauthorized Elementary and Secondary Education Act (ESEA). It is critical that Congress take steps in the ESEA reauthorization to provide support for this particularly at-risk group of students.

Click here for a PDF version of this letter, including signers.

May 2, 2013

Dear Member of Congress:

For decades, SNAP has helped ensure vulnerable low-income people in our nation can put food on the table. We urge Congress to continue the longstanding bipartisan commitment to protect and support SNAP, specifically by opposing proposals to cap or reduce funding, restrict eligibility, reduce benefits, or make harmful structural changes in the upcoming Farm Bill and any other legislation. If anything, as the recent Institute of Medicine (IOM) report on SNAP benefit inadequacy showed, the program needs to be strengthened through additional benefits to make allotments sufficient to purchase a nutritionally adequate diet.

If SNAP is weakened, many millions of low‐income Americans will be harmed – people with disabilities, children, seniors and struggling parents – those who work, as well as those who are unemployed or underemployed. If SNAP is weakened, our nation will see more hunger and food insecurity, worse health and educational outcomes, and higher health costs.

As our nation's first line of defense against hunger, SNAP has extraordinary strengths:

• SNAP responds effectively in times of economic downturns and in the wake of natural disasters. SNAP's responsiveness to unemployment proved it to be one of the most effective safety net programs during the recession, providing newly needy families with a stable source of food. Similarly, SNAP quickly and efficiently gets nutrition assistance to people recovering from hurricanes and other disasters.
• SNAP reaches the neediest and most vulnerable people in our country. The average household has an income of only 58.5 percent of the federal poverty level and 83 percent of all benefits go to households with a child, senior, or disabled person.
• SNAP fights poverty and improves health. SNAP lifted 3.9 million Americans above the poverty line in 2011, including 1.7 million children and 280,000 seniors. Extensive research also shows that SNAP improves dietary intake and health, especially among children, and with lasting effects. Recent studies find that early exposure to SNAP in childhood has favorable impacts on metabolic and economic outcomes in adulthood. And national food consumption data (as measured by USDA's Healthy Eating Index) show that each additional SNAP dollar increased a household's score for overall dietary quality.
• SNAP stimulates local economies.Because SNAP benefits are so urgently needed, they are spent quickly - 97 percent of benefits are redeemed by the end of the month of issuance. Moody's Analytics and USDA estimate that the economic growth impact of SNAP ranges from $1.73 to $1.79 per $1 of SNAP benefits.
• SNAP is a public/private partnership that works efficiently and accurately. SNAP makes good use of regular channels of commerce - retail stores and Electronic Benefit Transfer (EBT) systems. SNAP's payment accuracy rate is an all-time high of over 96 percent.

Our nation can ill afford to see SNAP weakened in the Farm Bill or other legislation. Already, benefits that currently average less than $1.50 per person per meal are scheduled to drop on November 1, 2013, with termination of the American Recovery and Reinvestment Act (ARRA) benefit boost. Recognizing the importance of SNAP benefits, the President has included an extension of the SNAP ARRA benefit boost in his FY2014 budget. Overwhelmed food banks, pantries, religious congregations and other emergency food providers across the country cannot fill the significant gaps in nutrition assistance that weakening SNAP would leave.

We call on you to support and protect SNAP and to oppose any proposals that would weaken SNAP's structure or cut its funding.

AARP
Academy of Nutrition and Dietetics
AFL-CIO
Alliance for a Just Society
Alliance to End Hunger
American Commodity Distribution Association
American Federation of State, County and Municipal Employees (AFSCME)
American Federation of Teachers (AFT)
American Public Health Association (APHA)
American Society for Nutrition
Americans for Democratic Action (ADA)
Association of Farmworker Opportunity Programs (AFOP)
Association of Jewish Family & Children's Agencies
Association of State & Territorial Public Health Nutrition Directors (ASTPHND)
Bread for the World
Campaign for Better Health Care
Campaign for Community Change
Center for Law and Social Policy (CLASP)
Child Care Development Services, Inc.
Children's Defense Fund (CDF)
Children's HealthWatch
Coalition on Human Needs (CHN)
Community Action Partnership (CAP)
Congressional Hunger Center (CHC)
Department for Professional Employees, AFL-CIO
Disciples Home Missions Christian Church (Disciples of Christ)
Disciples Justice Action Network
E S Foods
End Hunger Network
Evangelical Lutheran Church in America
Every Child Matters
Families USA
Feed the Children
Feeding America
First Focus Campaign for Children
Food Research and Action Center (FRAC)
Friends Committee on National Legislation
Generations United
Heartland Alliance for Human Needs and Human Rights
Heartland Health Outreach, Inc.
International Federation of Professional and Technical Engineers
International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW)
Jewish Council for Public Affairs (JCPA)
Jewish Federations of North America
Johns Hopkins University Center for a Livable Future
Justice and Witness Ministries, United Church of Christ
LeadingAge
Legal Momentum
MAZON: A Jewish Response to Hunger
Meals On Wheels Association of America
National Advocacy Center of the Sisters of the Good Shepherd
National Association for the Education of Homeless Children and Youth
National Association for the Education of Young Children (NAEYC)
National Association of County and City Health Officials
National Association of County Human Services Administrators
National Association of Nutrition and Aging Services Programs (NANASP)
National Association of States United for Aging and Disabilities
National CACFP Sponsors Forum
National Catholic Rural Life Conference
National Center for Law and Economic Justice
National Council of Jewish Women (NCJW)
National Council of La Raza (NCLR)
National Council on Aging
National CSFP Association
National Education Association (NEA)
National Employment Law Project (NELP)
National Health Care for the Homeless  Council
National Immigration Law Center (NILC)
National Law Center on Homelessness & Poverty
National Partnership for Women & Families
National Urban League
National WIC Association (NWICA)
National Women’s Law Center
NETWORK, A National Catholic Social Justice Lobby
New England Consortium Regional Poverty Reduction Initiative
Northeast Regional Anti-Hunger Network (NERAHN)
OWL-The Voice of Midlife and Older Women
Provincial Council for the Clerics of St. Viator (Viatorians)
Public Justice Center
RESULTS
School Food FOCUS National Office
School Nutrition Association (SNA)
Service Employees International Union (SEIU)
Share Our Strength (SOS)
Sisters of Charity of Nazareth
Sisters of Mercy of the Americas, Institute Justice Team
Social Security Works
Society of St. Andrew
Sojourners
The Episcopal Church
Trust for America’s Health
Union for Reform Judaism
United Church of Christ Justice and Witness Ministries
United Food and Commercial Workers International Union (UFCW)
United Neighborhood Centers of America
United Way Worldwide
U.S. Conference of Catholic Bishops
U.S. Conference of Mayors
Voices for America's Children
Western Region Anti-Hunger Coalition (WRAHC)
WhyHunger
Wider Opportunities for Women

February 2013

Executive Summary

As the U.S. winds down two wars, acknowledges changing national needs, and deals with federal spending constraints, the Pentagon and its contractors will definitely feel the effects. The coming defense downsizing will be challenging for the many communities across the country whose economies have been shaped by the sharp increases in military spending of the post-9/11 period. They will need help adjusting and creating new economic opportunities to replace a jobs base that has become dependent on surging military budgets.

This white paper offers a menu of choices that will be of interest to members of Congress who are concerned about the loss of jobs that may be anticipated as the result of changes in the Pentagon budget. Many of these resources, of course, would also be available to communities recovering from other economic losses. While these programs are small and typically underfunded compared to their potential, they come with records of experience and success. When the availability – and possibility – of these programs is coupled with the opportunity for industrial growth presented by climate-related challenges, they suggest a positive way forward for communities around the country.

The framework is presented in three parts:

Strengthen existing programs.

The Department of Commerce provides technical assistance (through a network of Manufacturing Extension Partnership centers) and grants funds for community planning. These programs are available to communities undergoing economic dislocations. In addition, the Department of Labor’s Employment and Training administration coordinates federal jobs programs, which could benefit from adequate funding and adjustments for dislocated defense workers. Finally, three departments – Commerce, Energy, and Treasury – administer grant and loan programs for economic development.

Restore programs that were effective in easing the transition from recent Defense Department drawdowns.

Between 1990 and 1997, the federal government made nearly $20 billion available for purposes related to post Cold War downsizing. A multi-agency program known as the Technology Reinvestment Project sought to facilitate the transfer of defense technologies to the civilian sector. The Defense Department and Labor Department coordinated community adjustment and worker retraining assistance, helping employers restructure, retool, and retrain to avoid layoffs. The Defense Department also transferred a modest amount to the Small Business Administration to underwrite approximately $1 billion in loans for small and medium-sized defense businesses seeking to move into commercial areas.

Initiate programs to fill critical gaps and to respond to current conditions.

The president has proposed a “National Network for Manufacturing” program to promote innovative manufacturing through 15 “institutes” around the country. A pilot institute is now funded by a grant from several departments. Another promising development, some of the national labs are moving toward the development of clean energy technologies. Finally, employment and education assistance to veterans coming home from the two wars will help to strengthen the economy and ease their transition into recovering communities.

Author: Miriam Pemberton, Research Fellow, Institute for Policy Studies, 202-787-5214, miriam@ips-dc.org

Additional Contact: Ruth Flower, Friends Committee on National Legislation, 202-903-2524, flower@fcnl.org

For a printable pdf of this document, click here.

To read a longer version explaining the framework in detail, click here.

As the U.S. winds down two wars, acknowledges changing national needs, and deals with federal spending constraints, the Pentagon and military-related industries will definitely feel the effects. The coming defense downsizing will be challenging for the many communities across the country whose economies have been shaped by the sharp increases in military spending of the post-9/11 period. They will need help adjusting and creating new economic opportunities to replace a jobs base that has become dependent on surging military budgets.

In normal circumstances, market forces are reasonably efficient at reallocating resources. If a product is no longer needed (e.g. buggy whips), the manufacturers switch to producing products in demand. But when the federal government has been the primary or only customer for a product, it has a responsibility to ease the transition for companies and communities that would be adversely affected.

Fortunately, new economic opportunities are emerging as the nation looks for ways to respond to rapid environmental changes. In a year of record droughts and attendant crop failures, followed by the punishing winds and waves of Hurricane Sandy, the signs of climate stress, and the need for a transition to clean energy, energy conservation, and efficient transportation, are unmistakable. As we seek to turn toward nation-building at home, a framework for federal initiatives to assist defense-dependent communities should help these communities find opportunities for economic development in the emerging clean energy and transportation economy.

The Framework

1. Strengthen existing programs useful for community economic transition

2. Restore programs that were the most effective in smoothing the previous defense drawdown

3. Initiate new programs to fill critical gaps and respond to current conditions

Legislation based on this framework could be attached, in whole or in part, to a job creation bill in the new congressional session, or to regular legislation such as the National Defense Authorization Act (NDAA), or could be introduced as stand-alone legislation. Some portions could be implemented administratively. One option for funding would follow the precedent of the previous post-Cold War defense downsizing with legislation to transfer funds from the Department of Defense to the Departments of Labor and Commerce.

1. Strengthen existing programs

Federal assistance relevant to defense community economic transition is currently available in four areas: community planning, technical assistance, job retraining and finance.

Community Planning
The Commerce Department offers planning grants to help communities undergoing economic dislocations to examine existing local and regional economic strengths and new areas of development. Implementation grants are also available. Special emphasis is given to “national strategic priorities” including initiatives for job growth and business expansion in clean energy, green technologies and sustainable manufacturing.

Recommendation: Revise the program objectives to give higher priority to helping communities adjust to private sector defense downsizing.

Through its Office of Economic Adjustment the Defense Department also offers planning grants, technical assistance and community development block grants for communities undergoing defense transitions, both for base closure and redevelopment, and for adjustment to private sector defense job loss. In recent years this office’s work has focused almost exclusively on base closure redevelopment.

Recommendation: For the coming period, shift the focus of the OEA toward helping communities that are adjusting to loss of defense jobs in the private sector. In the event a new Base Realignment and Closure Commission (BRAC) process is authorized, balance the agency’s focus between base community and private sector defense community economic development. Also, modify the assistance model to put more emphasis on working with local planning entities and to integrate planning for defense downsizing with existing local master plans.

Technical Assistance. The Commerce Department administers a network of Manufacturing Extension Partnership centers (MEP) helping small- and medium-sized manufacturers to innovate and grow. MEP calculates each dollar of its investment generates an average of $30 in new sales growth for its client companies.

A new Energy Regional Innovation Cluster (E-RIC) pilot program through MEP is intended to spur regional economic growth through the development of energy efficient building technologies, designs and systems.

Recommendation: Increase funding for MEP. Restore the expertise that MEPs developed in the post-Cold War period to assist companies adjusting to the loss of defense contracts. Add a focus on helping these companies adapt their capabilities for green technology manufacture.

Job Retraining
The Department of Labor’s Employment and Training Administration coordinates federal job training programs. The Recovery Act funded training focused on creating a skilled energy efficiency and renewable energy workforce. These funds have expired, and job-training funds in general have been cut back.

Recommendation: Preserve and expand job retraining programs focused on green jobs and adjustment for dislocated defense workers.

Finance
The Commerce, Energy and Treasury Departments all administer programs offering grants and loans for economic development focused on the clean energy and transportation sectors. Some were funded by the Recovery Act, now expired.

Recommendation: Expand funding and improve coordination among programs offering support for a transition to a clean energy and transportation economy.

Additional information on all of these programs is available at: http://www.fpif.org/files/5073/federal-resources.doc.

2. Restore previously effective programs

Between 1990 and 1997, nearly $20 billion was spent for purposes broadly related to the post-Cold War downsizing. Of this, $8.6 billion did not facilitate a transition to production for the civilian sector, but rather was devoted to new defense technology initiatives. Of the remaining $12.4 billion that was well-targeted to facilitate the defense transition, $3.8 billion went for separation benefits for demobilizing military personnel; nearly $1.6 billion went to assist defense workers and communities, and about $5.7 billion went to stimulate new high-tech industries. These proportions are reasonable; since the defense economy is now much larger, the amounts must be adjusted accordingly.

Technology Transfer
One of the largest and most innovative parts of the program was the Technology Reinvestment Project (TRP). It was a multi-agency program offering nearly $800 million in grants to consortia of large and small manufacturers in both the defense and commercial sectors, nonprofits and labor unions, universities, national labs and other partners to facilitate the transfer of defense technologies to the civilian sector. While the program had many important successes, they were limited by the excessively high priority given to dual-use projects—that is, projects designed to produce technologies applicable to both the defense and civilian sectors.

Recommendation: Recoup some of the nation’s investment in increased defense R&D spending by instituting a new Technology Reinvestment Project whose priority is developing new civilian uses for defense technology. Selection criteria should prioritize job creation, green economy transition and technological development that contributes to the productivity of the US economy as a whole, and to the revival of U.S. manufacturing, not military use or dual-use.

Community Adjustment and Worker Retraining
Of the core programs offering community adjustment and worker retraining assistance, the best were a small subsection of pilot programs funded by the Defense Department and administered through the Labor Department. They funded projects testing innovative ways to help employers retool, restructure and retrain to avoid layoffs; retraining defense workers for new jobs; helping communities develop comprehensive plans to help dislocated workers; and supporting locally-initiated strategies for defense transition.

Recommendation: Establish a fund for projects adapting these models to the conditions of the 21st century, and prioritizing the transition of defense workers and technologies to the needs of a transition to a clean energy and transportation economy.

Finance
The Defense Department transferred a modest amount to the Small Business Administration to underwrite approximately $1 billion in loans for small and medium-sized defense businesses seeking to move into commercial areas. While some of these loans achieved their purpose, the program was, like the TRP, hamstrung by the excessive focus on military and dual-use technology.

Recommendation: Recreate this program and refocus it toward providing small and medium-sized defense contractor companies with financial assistance to diversify into production for the commercial sector, giving priority to energy efficiency and clean energy and transportation technology.

3. Initiate new programs filling critical gaps and responding to current conditions

National Network for Manufacturing
While the defense-dependent economy is multi-faceted, its core—and the source of most of its high-wage, high-skill jobs—is manufacturing. The Obama administration has prioritized the revival of U.S. manufacturing. and has proposed a National Network for Manufacturing which would establish as many as 15 Institutes for Manufacturing Innovation, one of which focuses on environmentally sustainable technology. The proposal is as yet unfunded, though a pilot institute is supported by an investment of $45 million from the Departments of Defense, Energy and Commerce and the National Science Foundation. The priorities for the initiative include an increased role for workers and communities in creating and sharing in the gains from innovative manufacturing.

Recommendation: Increase the focus of this initiative on manufacturing to make the U.S. a leader in the growing world market for clean energy, lightweight materials, and efficient appliances, lights, computers, and vehicles. And develop mechanisms for incorporating in this initiative the national objective of creating new economic opportunity for currently defense-dependent communities.

Technology Transfer
Several of the national labs have developed a focus on clean energy technologies. One, the National Renewable Energy Lab (NREL) is devoted solely to this purpose. For others it is a sidelight to their main focus on developing defense technology. In the post-cold war period the labs began to set up Cooperative Research and Development Agreements (CRADAs) with private entrepreneurs to facilitate the commercialization of this technology.

Recommendation: To align the labs’ operations with the national need to strengthen the economy during a period of defense downsizing, prioritize the goal of facilitating the commercialization of defense technology. The Defense Department is spending about $1.2 billion a year from an “Operational Energy” budget to increase the energy efficiency of its own operations. These expenditures offer potential benefits for clean energy innovation for the economy as a whole.

Recommendation: In setting selection criteria for technologies to fulfill DoD’s own clean energy goals, require that the agency establish a preference for those that hold an advantage in adaptability to the civilian energy sector. Assistance to Demobilizing Service Members Recent experience indicates that service members demobilizing in the downsizing will face special challenges in securing civilian employment.

Recommendation: Fix the current GI Bill by expanding the benefit to include vocational training. Pass legislation similar to the Veteran Employment Assistance Act of 2010 considered in the 111th Congress to provide direct assistance to veteran-owned small businesses, improve DoD’s Transition Assistance Program, help veterans secure vocational certificates based on their service, and provide a tax credit to employers who hire veterans.

Conclusion

As our nation begins its post-Iraq and Afghanistan war defense downsizing, we must provide for the workers and communities that will be affected. If we do this right, this challenge can become an opportunity to support the clean energy and transportation transition we must undertake.


Author: Miriam Pemberton, Research Fellow, Institute for Policy Studies, 202-787-5214, miriam@ips-dc.org

Additional Contact: Ruth Flower, Friends Committee on National Legislation, 202-903-2524, flower@fcnl.org

For a printable pdf of this document, click here.

To read a shorter Executive Summary, click here.

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I. PREAMBLE

A. Our Message to Political Leaders

We write as communities of faith where respect and care for one another is a sacred imperative and we are learning to "love our neighbor as ourselves." But as “one nation under God,” American society is, or should be, also such a place, where we delight in the value of each and every one, and gladly accept a mutual responsibility for one another's wellbeing. Government of, by and for the people at its best is a vital forum for promoting such common good and ensuring that no one is left behind.

A faithful budget must promote a compassionate and comprehensive vision for the future. As communities of faith, we call on our elected leaders to craft a federal budget that fulfills our shared duty to each other in all segments of society, to those who are struggling to overcome poverty or are especially vulnerable, and to future generations through our collective responsibility as stewards ofCreation.

Our message to the nation’s leaders -- rooted in our sacred texts -- is this: Act with mercy and justice by serving the common good, robustly funding support for poor and vulnerable people throughout our world, reducing reliance on tools of violent conflict, and exercising proper care and keeping of the earth.

Too often lost in the current political debate is the hopeful vision of a future where all God’s children enjoy the abundance that has been entrusted to our care, and each person is empowered to live a life of dignity free from hunger and poverty. In recent years, the conversation over federal budgets has focused narrowly on how to reduce or eliminate the budget deficit, as if the highest goal of government were merely to achieve a row of zeroes on our nation’s financial ledger. The budget deficit must not be the only barometer of our nation’s well-being.

Instead, the debate over our annual budgets should principally focus on how best to strengthen communities and ensure a sustainable common good, addressing the legacy of failed policies that haveled to historic rates of long-term unemployment, unconscionable poverty in a land of immense wealth, and an economy that is failing to generate sufficient jobs at fair wages.

It is simply not true that we must reduce assistance for the poorest among us in order to achieve fiscal recovery. A Faithful Federal Budget can advance fiscal responsibility while increasing support for the poor and vulnerable, by focusing on job creation and economic revitalization, an equitable tax system based on fairness, and true human security over disproportionate military spending.

We must heed the words of the Prophet Isaiah who assures us, “[I]f you offer your food to the hungry and satisfy the needs of the afflicted, then your light shall rise in the darkness and your gloom be like the noonday . . .you shall raise up the foundations of many generations; you shall be called the repairer of the breach, the restorer of streets to live in”(58:10-12).

B. The Scriptural Call

In this time of global economic crisis, Jews, Christians, Muslims, and other communities of faith, guided by our sacred texts, advocate a constructive vision of the directions needed for a just society and a healthier world. The common prophetic message found in sacred texts does not rest solely on eternal life, but on God’s Will being done “on earth as it is in heaven.” Our shared traditions insist that piety and righteousness cannot remain only individual endeavors, but must also encompass our society’s commitment to justice and mercy.

We respond to the call of the Prophet Isaiah, who challenges the nation to know God’s ways and to practice true piety and righteousness -- breaking injustice and oppression, feeding the hungry, and sheltering the homeless:

The New Testament Gospels call us to embody in action the just vision of Isaiah’s piety and righteousness:

The Qur’an teaches a piety that is inextricably linked with the spending of money for the betterment of those who are struggling:

Guided by these sacred texts, we lift our voices to speak to the social and ecological challenges we face together under God -- as a people, as a nation, and as global citizens.

Never shall you attain to true piety unless you spend on others out of what you cherish yourselves; and whatever you spend – verily, God has full knowledge thereof. – The Holy Qur’an 3:92

C. Principles of a Faithful Federal Budget

Restoring Economic Opportunity: The opportunity to work hard and improve one’s economic condition is a value that defines this nation. But it is a reality increasingly available only to those who are already wealthy. The principles of “liberty and justice for all”, as enshrined in our Pledge of Allegiance, seem hollow in light of the pace at which wealth and opportunity have shifted from the many to the few. We believe that everyone deserves equal opportunity and must therefore have equal access to the building blocks for success. We urge Congress to make the long-term investments needed to sustain the United States’ economic renewal, create economic opportunity for all, and work toward ending poverty. This requires investments in high-quality, affordable education, sustainable jobs with living wages, and policies that help those most in need to build assets.

Ensuring Adequate Resources for Shared Priorities: From the time a federal income tax was first established, the concept of a progressive tax system, where those who have most benefitted in our society also contribute the most in return, has been widely accepted as fair and equitable. Over the last several decades our tax system has grown less progressive, and now frequently places more of a tax burden, as a percentage of income, on the middle class than it does on the wealthiest among us. The tax system was also designed to create financial incentives for individuals to act in ways that are thought to strengthen our social fabric, such as investing and saving for retirement, starting a business, owning a home, getting a college education – even charitable giving. Because of the way tax benefits are structured, however, too often low-wage workers do not earn enough to access those benefits. This results in a system that perpetuates inequality by rewarding behavior that generates financial security for those who already have it, while excluding those who are working hard at low-wage jobs and need help the most. An equitable, moral tax code should reward the efforts of low-income people to work and save at every level. A Faithful Budget will act to correct this imbalance. Investment in the renewal of our nation’s economic well-being and protecting the poor and vulnerable will itself serve to reduce the long-term deficit. Such investment should be financed through an equitable tax system founded on fairness, where those who have reaped extraordinary benefits contribute proportionately to the good of all.

Prioritizing True Human Security: Our nation now allocates well over half its discretionary budget to the Pentagon as a result of sharp military spending increases that began in 1998 and continued for over a decade. At the same time we have invested heavily in more militarized border security and a proliferation of private prisons, similarly expensive tools that fail to address the root causes of violence, migration, and crime. This unbalanced approach has rendered our nation unable to invest in other areas that build true human security. Disproportionate spending on the mechanisms of war and enforcement has left our nation less secure in so many other ways. We believe a faithful budget must reevaluate these priorities and increase investment in the areas of health, education, sustainable livelihoods and community well-being that are essential to true security. Our budget priorities should reflect a more balanced approach to the full spectrum of investments that build meaningful security for individuals, families, and communities, [and increases] with less reliance on military and enforcement spending and greater investment in the building blocks of healthy, resilient, and peaceful societies.

Meeting Critical Human Needs at Home: The faith community remains committed to serving vulnerable populations – but we cannot begin to address these needs alone. Our nation must implement policies that will reduce poverty and hardship – it is not only the right thing to do, but also critical to our nation’s most pragmatic interests. We fulfill our calling as a people as well as our long term shared interests when we invest in a social safety net that will support the vulnerable in times of hardship such as recession, unemployment, sickness, and old age. Even as the economy has begun to revive, unemployment rates remain remarkably high. Proactive stimulus policies, as well as the elasticity of mandatory safety net programs such as the Supplemental Nutrition Assistance Program (SNAP) and Medicaid, are incredibly effective measures that have prevented millions from falling into poverty. Congress has the moral and pragmatic responsibility, even as it pursues long-term deficit reduction, to serve the common good by adequately funding critical human needs, social service and environmental protection.

Meeting Critical Human Needs Abroad: Ending hunger and extreme poverty is within reach, making America’s commitment to our global neighbors more important than ever. While costing less than one percent of the U.S. federal budget, humanitarian and poverty-focused international assistance improves health and nutrition, saves millions of lives, and builds self-reliance among the world’s most vulnerable people. The United States benefits because our security as a people is bound up with the security of all people. Generous, robust and well-targeted foreign assistance is a cost-effective investment that helps prevent conflict, empowers families and communities, and builds for broad-based sustainable development. Congress has the moral and pragmatic responsibility to provide robust funding for humanitarian and poverty-focused international assistance programs, which ensure human security in its broadest sense.

Accepting Intergenerational Responsibility: We cannot leave our children a legacy of debt, but neither must we leave them a legacy of rising poverty and growing inequality. As educational programs, adequate housing, health care, nutrition programs, job training, and other community services all fall victim to pressures to reduce the deficit, economic vulnerability continues to grow and more families find themselves one disaster away from poverty. Our nation’s vital social safety net did not create the deficit, and the vulnerable populations served by the social safety net should not bear the brunt of deficit-reduction measures. A Faithful Budget will seek wise and far-sighted ways to reduce the nation’s long-term deficits while protecting the most vulnerable among us.

Using the Gifts of Creation Sustainably and Responsibly: In the book of Genesis, God called Creation “good.” Because of Creation’s intrinsic worth, the earth and its resources deserve our respect and our consideration. While the earth has been given to us as a home, and while its resources are bountiful and good, we have abused this gift, placing unsustainable burdens on our environment and its resources. As a human community, we owe a debt to our environment, both for its own sake as well as our own. Environmental degradation has substantial, and potentially irreversible, short and long-term impacts, such as rising health care costs from air pollution and resulting respiratory problems; increased premature deaths due to the cumulative impacts of poor air quality; declining water quality in our communities; degradation of public lands; global climate change, which is already affecting some of the most vulnerable populations on earth; and loss of open space. A Faithful Budget must encompass a reverence for our created environment, making choices that protect air, water, and land—the entirety of Creation—gifts from God that must be available to and protected for this generation and those to come.

Providing Access to Health Care for All: Our members, congregations, and institutions have ample direct experience in providing access to health care for all people. All individuals, regardless of their age, income, gender, gender identity, sexual orientation, race or ethnicity, geography, employment status, or health status, deserve equal access to quality, affordable, inclusive and accountable health care. Reducing health care options for some based on any of these factors is profoundly unjust and societally unwise. As we examine the interwoven web of access within the federal budget, there are areas of profound concern for the common good and practices of good stewardship. A Faithful Budget will ensure access to quality health care by investing in wellness and making needed improvements in the health care system.

Recognizing a Robust Role for Government: We are inspired by a common conviction that God has called on all of us – as individuals, as communities of faith, and as a society acting together through our government – to protect the vulnerable and promote the dignity of all people. For this reason the faith community has worked alongside the United States government for decades to protect those struggling to overcome poverty in the U.S. and abroad. People who need help paying rent or feeding their children come to us, frequently as a first and last resort, and we do all we can to provide the aid that compassionate love demands. And yet, faith communities and agencies cannot do it alone. The need is great as many who once gave to our ministries of mercy are now recipients of our charity. We need the government’s continued partnership to combat poverty by providing a truly adequate short-term safety net, and by means of policies that serve to prevent poverty, reduce extreme inequality, restore economic opportunity for all, and rebuild a robust middle class.

American Friends Service Committee
Arkansas Interfaith Alliance
Bread for the World
Center of Concern
Center on Conscience and War
Christian Church (Disciples of Christ) in the United States and Canada
Christian Connections for International Health
Christian Reformed Church Office of Social Justice
Church of the Brethren
Church World Service
Columban Center for Advocacy and Outreach
Commission on Social Action of Reform Judaism
Conference of Major Superiors of Men
Council of Churches of Rhode Island
The Delaware Ecumenical Council of Children
Evangelical Lutheran Church in America
Faithful Reform in Health Care
Florida Council of Churches
Franciscan Action Network
Friends Committee on National Legislation
Interfaith Worker Justice
Institute Leadership Team of the Sisters of Mercy of the Americas
Islamic Society of North America
Jesuit Conference
Jubilee USA Network
Justice, Peace, and Integrity of Creation Office, Missionary Oblates of Mary Immaculate, US
Leadership Conference of Women Religious
Maryknoll Office for Global Concerns
Mennonite Central Committee U.S.
Michigan Unitarian Universalist Social Justice Network
Minnesota Council of Churches
Muslim Public Affairs Council
National Advocacy Center of the Sisters of the Good Shepherd
National Campaign for a Peace Tax Fund
National Council of Churches of Christ, USA
NETWORK, A National Catholic Social Justice Lobby
North Carolina Council of Churches
Pax Christi USA
Pennsylvania Council of Churches
Presbyterian Church (USA), Office of Public Witness
Progressive National Baptist Convention
Unitarian Universalist Association
United Church of Christ, Justice and Witness Ministries
United Methodist Church, General Board of Church and Society

To read the entire Faithful Budget for Fiscal Year 2014, click here.

April 23, 2013

Honorable Sherrod Brown
U.S. Senator, Ohio
713 Hart Senate Office Building
Washington, D.C.20510

Honorable Richard Durbin
U.S. Senator, Illinois
711 Hart Senate Office Building
Washington, D.C.20510

Dear Senators Brown and Durbin:

Tens of millions of low-to middle-income, working families turn for help to the crucially important Earned Income Tax Credit and Child Tax Credit. These proven policy tools target their assistance to households who often work the hardest yet struggle the most to get by. These credits help such families avoid poverty and – instead – pursue a path toward financial stability, not to mention better health and education outcomes.

Thus we, the undersigned, write in support of your Working Families Tax Relief Act of 2013, to preserve and strengthen these critical tax credits for families who represent the very core of our nation’s economic strength. That’s something the recent American Taxpayer Relief Act of 2012 did not guarantee, as it extended several key EITC and CTC improvements for only five years–even as it permanently extended generous federal estate tax rates that help only the very wealthiest of households.

Unpredictability heavily stamps the day-to-day lives of working families who struggle to cover the basics, from rent and groceries to utility bills and community college tuition. Your bill takes a significant step toward greater predictability, ensuring that taxpayers need not fear the loss of EITC and CTC provisions that specifically shield more than 13 million working households from each paying an average of $843 more in taxes. We applaud your proposal for maintaining CTC eligibility for more of the lowest-income families raising children, as well as retaining EITC provisions representing greater help for married couples and for families with three or more kids.

Moreover, your legislation would make several other vital improvements in the EITC. Increasing the amount of the too-small credit for childless workers is long overdue – especially considering current law actually taxes some impoverished, childless adults even further into destitution. Also, allowing childless workers to claim the EITC at 21 years of age (rather than 25) would provide a greater work incentive and better support for struggling, young adults. Finally, several other reforms would simplify EITC claims and help reduce their incidence of errors – many of which are simply the inadvertent product of families facing an unnecessarily complicated tax code.

America’s lowest-income, hardworking families already pay a greater proportion of their earnings in federal, state, and local taxes than do many of the wealthiest households. Your legislation would help prevent that imbalance from worsening, and instead set a better policy course toward lifting-up our workers, our families, and our nation.

We thank you for this important effort, pledge our support for it, and encourage your fellow policymakers to join in it.

Sincerely,

National Organizations

9to5, Milwaukee, WI
A World Fit for Kids!, Los Angeles, CA
Adrian Dominicans, Adrian, MI
Alliance for a Just Society, Seattle, WA
American Friends Service Committee, Washington, DC
Americans for Tax Fairness, Washington, DC
Bread for the World, Washington, DC
Building Movement Project, New York, NY
Center for Law and Social Policy, Washington, DC
Cerebral Palsy Research Foundation, Wichita, KS
Children’s Defense Fund, Washington, DC
Coalition on Human Needs, Washington, DC
Community Action Partnership, Washington, DC
Corporation for Enterprise Development, Washington, DC
Doorways to Dreams Fund, Boston, MA
Elev8, Chicago, IL
Felician Franciscan Sisters of North America, Beaver Falls, PA
First Focus Campaign for Children, Washington, DC
Food Research and Action Center, Washington, DC
Friends Committee on National Legislation, Washington, DC
Goodwill Industries International, Rockville, MD
Half in Ten, Washington, DC
HIV Prevention Justice Alliance, New York, NY
Human Facets International, Montgomery Village, MD
Malcolm X Center, Greenville, SC
National Advocacy Center of the Sisters of the Good Shepherd, Silver Spring, MD
National Center for Law and Economic Justice, New York, NY
National Community Tax Coalition
National Council of Jewish Women, Washington, DC
National Council of La Raza, Washington, DC
National Gay and Lesbian Task Force, Washington, DC
National Women’s Conference Committee, Eau Claire, WI
National Women’s Law Center, Washington, DC
NETWORK, A National Catholic Social Justice Lobby, Washington, DC
POZ VETS USA, Atlanta, GA
Provincial Council of the Clerics of St. Viator (Viatorians), Arlington Heights, IL
Racial and Ethnic Health Disparities, Washington, DC
Responsible Wealth, Boston, MA
RESULTS, Washington, DC
Sargent Shriver National Center on Poverty Law, Chicago, IL
Single Stop USA, New York, NY
Society of Saint Vincent De Paul, Maryland Heights, MO
Unitarian Universalist Association, Boston, MA
United for a Fair Economy, Boston, MA
United Neighborhood Centers of America, Washington, DC
Ursuline Sisters, Maple Mount, KY
VARA Consulting, Potomac, MD
Voices for America’s Children, Washington, DC
WhyHunger, New York, NY
Wider Opportunities for Women, Washington, DC
World Knowledge Bank, Arlington, VA

State and Local Organizations

Alabama
HIPPY Alabama, Montgomery

Alaska
Alaska Center for Public Policy, Anchorage

Arizona
Foundation for Senior Living, Phoenix Arizona
Primavera, Tucson
Protecting America’s Family Coalition, Phoenix
Rehoboth Community Development Corporation, Phoenix
Teens, Training and Taxes, Parks

California
9to5 California, Sacramento
California Center for Rural Policy, Arcata
Civic Center Barrio Housing Corporation, Santa Ana
Community Action Partnership of San Bernardino
County, San Bernardino
Filipino American Service Group, Inc., Los Angeles
Food for People, Eureka
Fontana Unified School District, Fontana
Hamilton Family Center, San Francisco
Jewish Family Service of Los Angeles, Los Angeles
Judith Quintoriano D.D. Tutoring, Pacifica
Lao Family Community Development, Inc., Oakland
League of Women Voters of San Diego County, San Diego
Mission Economic Development Agency, San Francisco
Sonoma County Task Force for the Homeless, Santa Rosa
St. Jerome Catholic Church, Los Angeles
We Care Sober Living Recovery Home, Sonora
Women Organizing Resources, Knowledge, and Services, Los Angeles

Colorado
9to5 Colorado
Denver Asset Building Coalition
Geyb Medical, Greeley
Law Offices of Dominick M. Saia, Louisville
Servicios de la Raza, Denver

Connecticut
Bridgeport Child Advocacy Coalition, Bridgeport
Collaborative Center for Justice, Hartford
Connecticut Association for Human Services, New Haven
Connecticut Alliance for Basic Human Needs, Hartford
Connecticut Association for Community Action, New Britain
Connecticut Voices for Children, New Haven
FSW, Inc., Bridgeport
Middlesex Coalition for Children, Middletown
Sharon Social Services, West Cornwall

District of Columbia
United Planning Organization
We Are Family Senior Outreach Network

Florida
Daystar Life Center, Inc., St. Petersburg
Florida
Farmworkers Association of Florida, Inc., Apopka
Florida Prosperity Partnership, St. Augustine
Miami Coalition for the Homeless, Miami
Mid Pinellas Democratic Club, Largo
Pax Christi Manasota Chapter, Bradenton
United Way of Northeast Florida, Jacksonville

Georgia
9to5 Atlanta, Atlanta
Atlanta Prosperity Campaign/Atlanta Community Food Bank, Atlanta
Georgia Rural Urban Summit, Decatur
Georgians for Prosperity, Atlanta
Women of Virtue, Inc., Covington

Illinois
AIDS Foundation of Chicago
Chicago Chapter Coalition of Labor Union Women
Human Action Community Organization (HACO)
Illinois State CLUW
SEIU HealthCare Illinois & Indiana

Hawaii
Hawaii Alliance for Community-Based Economic Development, Honolulu
Hawaii Appleseed Center for Law and Economic Justice, Honolulu

Iowa
Emergency Residence Project, Ames
Iowa Coalition Against Domestic Violence, Des Moines
ISED Ventures, Des Moines
Lutheran Services in Iowa, Greene
Resurrection Parish, Dubuque
Sisters of St. Francis, Dubuque
South Central Iowa Federation of Labor, Des Moines

Illinois
AIDS Foundation of Chicago, Chicago Center for Economic Progress, Chicago Chicago Family Health Center, Chicago Chicago Rehab Network, Chicago Chicago Women’s AIDS Project, Chicago Community Action Partnership of Lake County, Waukegan Healthcare Alternative Systems, Chicago Illinois School Psychologists Association, Chicago League of Women Voters of Wheaton, Wheaton National Council of Jewish Women, Illinois State Policy Advocacy, Chicago Ounce of Prevention Fund, Chicago Project IRENE, Berwyn Saints Peter and Paul Social Justice, Waterloo United African Organization, Chicago YWCA of Metropolitan Chicago, Chicago
Indiana
Community Action of Greater Indianapolis, Indianapolis
Indiana Association for Community Economic Development, Indianapolis
The Journey, Indianapolis

Kansas
Senior Services of Wichita, Inc., Wichita
Social Justice Office, Sisters of Charity of Leavenworth, Kansas City

Kentucky
Kentucky Youth Advocates, Jeffersontown

Louisiana
Louisiana Budget Project, Baton Rouge
United Way of Southwest Louisiana, Lake Charles

Massachusetts
Action for Boston Community Development, Boston
FamilyAid Boston, Boston
Massachusetts Law Reform Institute, Boston
Samson Trust, North Reading
Social Justice Group, Harwich
The Parents and Community Build Group, Inc., Allston

Maine
CASH Maine, Wiscasset
Lamey-Wellehan, Auburn
Maine Children’s Alliance, Augusta
New England Consortium Regional Poverty Reduction Initiative, South Portland

Maryland
Benedictine Sisters of Baltimore, Baltimore
Community Action Board of Montgomery County, Rockville
Govans Ecumenical Development Corporation, Baltimore
Maryland CASH Campaign, Baltimore
Maryland United for Peace and Justice, Bowie
Our Lady of Mercy Church, Potomac
PeterCares House, Greenbelt

Michigan
Community Economic Development Association of Michigan, Lansing
Justice and Peace Ministry, Rochester Hills
Michigan Economic Impact Coalition, Lansing
Michigan League for Public Policy, Lansing
Neighborhood Legal Services, Detroit
Pax Christi Michigan, Lansing
TrueNorth Community Services, Fremont
Work Services, Inc., Jackson

Minnesota
Litchfield Public Schools Early Childhood Programs, Litchfield

Missouri
Daughters of Charity Province of St. Louis, St. Louis
God’s Will in Action, Kansas City
Lutheran Family and Children’s Services of Missouri, St. Louis
Missouri Progressive Vote, Springfield
NorthEast Independent Living Services, Hannibal
Places for People, Inc., St. Louis
South Central Missouri Community Action Agency, Alton
Whole Health Outreach, Ellington

Montanna
Uptown National Organization for Women, Great Falls
Rural Dynamics, Inc., Great Falls

Nebraska
Center for People in Need, Lincoln
Sisters of Mercy West Midwest Justice Team, Omaha

New Hampshire
Children's Alliance of New Hampshire, Concord
Every Child Matters in New Hampshire, Concord
New Hampshire Family Assistance Advisory Council, Concord

New Jersey
Catholic Charities/Delaware House, Westhampton
Homeportfolio, LLC, Newark
National Council of Jewish Women, New Jersey State Public Affairs Network, Elizabeth
RESULTS of Central New Jersey, Bernardsville
United Way of Northern New Jersey, Morristown

New Mexico
Prosperity Works, Albuquerque
RESULTS of Santa Fe, Santa Fe

New York
Citizens' Committee for Children of New York, New York
Claire Heureuse Community Center, Inc., Jamaica
Community Food Advocates, New York
D & R Accounting & Tax Solutions, Inc., Jamestown
The Financial Clinic, New York
Fiscal Policy Institute, Latham
Food Bank For New York City, New York
Gray Panthers NYC Network, New York
Great Neck SANE/Peace Action, New York
Harlem Children's Zone, New York
Long Island Alliance for Peaceful Alternatives, Douglaston
Nazareth Housing Inc., New York
Neighborhood Preservation Coalition of New York State, Albany
New York Association of Psychiatric Rehabilitation Services, Bronx
New York City Labor Chorus, Roosevelt
People For Positive Action, Plattsburgh
Violence Intervention Program, New York
WestCOP, Inc., Elmsford
YWCA of the Greater Capital Region, Inc., Troy

Nevada
Life, Peace, and Justice Commission of the Diocese of Reno, Reno
S.A.F.E. House, Las Vegas

North Carolina
Action for Children North Carolina, Raleigh
Asheville RESULTS Group, Asheville
Community Link, Charlotte
North Carolina Council of Churches, Raleigh
North Carolina Public Service Workers Union, Durham
PMG Associates, LLC, Raleigh
Yadkin Valley Economic Development District, Inc., Boonville

Ohio
Ohio Disability Action Coalition, Cincinnati
Policy Matters Ohio, Cleveland
Progressive Priorities US, Boardman
Social Justice Institute, Cleveland Heights
The Potters House Ministries, Sciotoville
Voices for Peace, Huron
Wayne County Democratic Party, Wooster
West Ohio Food Bank, Lima

Oklahoma
Liggett & Liggett LLC, Oklahoma City
Youth Services for Stephens County, Duncan

Oregon
Fostering Hope, Salem
ROSE Community Development, Portland

Pennsylvania
Erie Benedictines for Peace, Erie
Housing Alliance of Pennsylvania, Jenkintown
Housing Authority County of Beaver, Beaver
Just Harvest: A Center for Action Against Hunger, Pittsburgh
Montgomery County Asset Building Coalition, Norristown
Montgomery County Community Action Development Commission, Norristown
Nazareth Housing Services, Pittsburgh
Pennsylvania Alliance for Retired Americans, Belle Vernon
Public Citizens for Children and Youth, Philadelphia
Pennsylvania Council of Churches, Harrisburg
Providence Connections, Pittsburgh
Sisters of St. Joseph, Aliquippa
Sisters Place, Pittsburgh
United Church of Christ, Harrisburg
United Way of Beaver County, Monaca
United Way of the Capital Region, Enola
West Chester Food Cupboard, West Chester
Westmoreland Community Action, Greensburg

Rhode Island
Capital Good Fund, Providence
Rhode Island Kids Count, Providence

South Carolina
Pendleton Place for Children and Families, Greenville
United Way of Greenville County, Greenville

Tennessee
Blount County Community Action Agency, Maryville
Sisters of Mercy, Knoxville
Women's Social Policy and Research Center, Nashville

Texas
Beyond Careers, Houston
East Texas Human Needs Network, Tyler
Education Equals Making Community Connections, Houston
Neighborhood Housing Services of Dimmit County, Carrizo Springs
Pax Christi Austin, Austin

Utah
Center of Hope Food Pantry, Bountiful
Salt Lake Community Action Program, Salt Lake City
Utah Housing Coalition, Salt Lake City

Vermont
AIDS Project of Southern Vermont, Brattleboro
BROC-Community Action in Southwest Vermont, Fair Haven
Champlain Valley Office of Economic Opportunity, Burlington
Green Mountain United Way, Montpelier
Hunger Free Vermont, Burlington
Voices for Vermont's Children, Montpelier

Virginia
Chesapeake Redevelopment and Housing Authority, Chesapeake
Heroes and Dreams, Richmond
Pittsylvania County Community Action, Inc., Danville
Quin Rivers, Inc., New Kent
Rappahannock United Way, Fredericksburg
Social Action Linking Together, Chantilly
Virginia Community Action Partnership, Richmond
Virginia Interfaith Center for Public Policy, Richmond
Virginia Organizing, Charlottesville

Washington
Catholic Charities Housing Services, Yakima
Children's Alliance, Seattle
Community Assistance Program, Blaine
El Centro de la Raza, Seattle
Housing Authority of Skagit County, Mount Vernon
Social Justice Ministry of Sacred Heart Catholic Church, Pullman
Sojourner Place, Kirkland
Statewide Poverty Action Network, Seattle
Triumph Treatment Services, Yakima

West Virginia
Louis County Family Resource Network, Weston

Wisconsin
9to5 Milwaukee, Milwaukee
Community Advocates Public Policy Institute, Milwaukee
Move to Amend of Southeast Wisconsin, Milwaukee
Pipe Organs/Golden Ponds Farm, Delafield
Wisconsin Council on Children and Families, Madison

President’s FY2014 Budget

This $1.8 trillion dollar package, unveiled last Wednesday, replaces sequestration in its entirety through a combination of revenue increases and spending cuts.

Pentagon

The President’s FY2014 budget funds the Pentagon $52 billion above sequestration budget caps. Overall, this section of the budget seeks a $150 billion in savings over 10 years, less than the $240 billion in the Senate Democratic budget and much less than the $500 billion enacted through sequestration. As well, most of the savings won’t come until halfway through the 10-year projection, when the current Administration will have transitioned out of office. While there is about $14 billion in savings over the next 5 years from eliminating certain weapons systems, the budget still maintains $8.4 billion in funding for the controversial and notorious F-35 Fighter jet, the most expensive weapon system in the Pentagon’s portfolio to date, with a price tag since 2001 estimated at a whopping $1.5 trillion. The budget also contains a placeholder of $88.5 billion for overseas contingency operation (OCO) or war funding. This means the dollar amount for OCO is somewhat arbitrary.

Savings are also found through reform in TRICARE and a round of Base Closure and Realignment (BRAC). In the 2005 BRAC, DoD’s own estimates showed insufficient initial savings with implementation proving extremely costly. A BRAC that starts now is somewhat provisional and won’t do much immediately to reduce the deficit over the next ten years (much like the rest of the inclusions in this section of the budget). This purposed BRAC would start in 2015 and would save $2.4 billion over 5 years. BRAC has tremendous impact potential and if done, must be done much more competently than in 2005 so that actual savings are achieved.

The President’s FY2014 budget remains within the BCA caps of $487 billion over 10 years. In light of the new reductions at the Pentagon, Secretary of Defense Chuck Hagel has ordered a “strategic choices and management review,” (what is being called “the scammer”) to outline options for the Pentagon going forward. The new leaner budget climate at the Pentagon will force this necessary and long overdue conversation about strategy and mission.

Taxes

The budget includes $583 billion in new revenues over ten years. The biggest revenue raiser comes from capping deductions and exclusions for high income households. This measure will raise $529 billion over ten years by limiting deductions and exclusions for the top 2% of taxpayers to 28 cents on the dollar; this makes the tax break that high income earners receive closer to the breaks that upper-middle income earners receive. An additional $53 billion comes from implementing the “Buffet Rule,” requiring households with annual income over one million dollars to pay at least 30% of their income in taxes, with a special provision for charitable giving.

Other revenue-raising measures include raising the tobacco tax to pay for preschool for low-income children. The budget also includes some revenue neutral corporate tax reform.

Spending

President Obama’s proposal has $200 billion in cuts to overall discretionary spending. Unfortunately, this means further cuts to non-defense discretionary spending, a principle FCNL has been advocating against. Although these cuts are split evenly between defense and non-defense, the balance is still tilted especially to the non-defense discretionary (NDD) side, which has already been cut significantly through the Budget Control Act. According to the Center on Budget and Policy Priorities, $1.5 trillion dollars of deficit reduction has already been done on the discretionary spending side, and three-fifths of that has come from non-defense discretionary spending (which includes spending for such things as low-income and public safety programs). While further cuts to NDD programs are disappointing, this budget does repeal sequestration in its entirety. As well, it includes $166 billion in spending on infrastructure and job creation, as well as spending on universal access to prekindergarten, which would be funded through the revenues from a tobacco tax.

Entitlements

Proposed reforms to entitlement programs include a plan to use chained CPI in measuring benefits for Social Security. Chained CPI (Consumer Price Index) would index Social Security benefits to the rate of inflation. The budget would apply chained CPI to cost-of-living adjustments in Social Security and would eventually mean smaller increases in yearly Social Security income. This measure would save $230 billion over 10 years ($130 in savings and $100 billion in revenue). The budget also includes about $400 billion in Medicare savings, mainly through raising premiums on wealthier beneficiaries and reforming payments to pharmaceutical companies.

Summary

Overall, the president's budget proposal is just one offer among many—like the Ryan budget, the Murray budget, the Congressional Progressive Caucus Budget, and others. Stay tuned for more on how the president's budget fits into budget negotiations and a more just, moral budget.

Download the flyer

Did you file your taxes? Although the April 15 deadline for filing taxes has passed, we're still focused on what our tax dollars pay for as the ongoing debate about the federal budget—how our government taxes and spends—rages in Washington, DC. FCNL continues to push for sustained cuts to Pentagon spending.. April is a great time to remind Friends and colleagues that we pay 37 cents of every federal income tax dollar to the Pentagon and related programs.

I hope you’ll print out this flyer and distribute it at your meeting, church or to Friends and family. Use our coins chart to talk with your friends and neighbors about how they think their tax dollars should be spent – the shape of the budget might surprise them. You can also share this image on Facebook.

Prioritizing our communities

Ultimately, government spending shows our priorities as a country. Talk with your friends and neighbors about what you think is important -- and ask them too! Use the coin chart to start a conversation about where your tax dollars are going, or try a different approach:

Hold a Bean Poll

Give each person a handful of beans and ask them how many beans they would spend on each program. The Whidbey Island Fellowship of Reconciliation held a bean poll in 2010. In a non-judgmental way, guests were invited to think about what was really important to them; to consider how they would spend the budget and learn how the budget was really spent.

Bake a Budget Pie

Use our template to slice a pie based on the federal budget. Take pieces based on your priorities, or hand them out at random. But be warned: the Pentagon slice is almost always too big for one person to finish alone.

Take action to cut the Pentagon budget »

Learn more about taxes from The Washington Newsletter »

April 5, 2013

As people of faith, we continue to be concerned about our country’s slow economic recovery. With this month’s release of unemployment rates, we see yet another sign that while economists may say that the recession has ended, the reality of unemployment and under-employment remains true for millions of Americans—particularly those often left on the margins of the conversation about economic recovery.

The unemployment rate in the month of March decreased to 7.6%. While the total jobless number is 11.7 million, 89,000 jobs were created in March. Still there remains a startling 4.6 million who are long term unemployed (those jobless for 27 weeks or more) — 39.6% of the unemployed population. Among specific worker groups the unemployment for adult men was 6.9%, adult women 7%, whites 6.7%, blacks 13.3%, Hispanics 9.2%, and Asians 5%.

So much of the rhetoric we hear about creating jobs and bettering our economy is geared at the middle class dream. Yet the ever-increasing gulf between wages in this country steadily grows each year. An April 2012 Economic Policy Institute (EPI) report, “The Future of Work: Trends and challenges for low-wage workers,” finds that, “Female, young, and minority workers are overrepresented in the ranks of low-wage workers, when ‘low-wage’ is defined as below the wage that a full-time, full-year workers would have to earn to live above the federally defined poverty threshold for a family of four. (In 2011, this was $23,005 per year, or $11.06 when adjusted to hourly wages.)”

On March 20th, 2013 the AP and NORC Center for Public Affairs Research released a survey finding that low-wage workers feel that they are worse off today than during the recession. Despite the fact that a number of studies report that more and more low-wage jobs are being made available, the survey showed that, “As a workforce sector, those earning $35,000 or less annually are generally pessimistic about their finances and career prospects.”

Since the recession officially ended (June 2009), 65% of the jobs added to the U.S. economy have been low-wage. Yet, these workers are still feeling tremendous strain and are facing difficulty making ends meet. As economist Mark Zandi states, “lower-income households have been hit very hard and have not benefited as much from the recovery. Their real wages are going nowhere. And this is a group that had more debt, fewer assets, is less likely to own a home or stocks and with little capacity to absorb higher gasoline prices.”

Just because new jobs are being created, it does not mean that they are “good jobs”—benefits and wages have been reduced, what was once full-time work might now be part-time. Half of the low-wage workers surveyed by the AP-NORC Center reported that “their financial situation was somewhat or much worse than in 2008.” And the possibility of the job creation slowing down might be on the horizon since, “Just 22 percent of [employers] said their organization’s lower-wage workforce grew over the last four years and only 34 percent expect it to increase in the coming four years.”

Despite the growth, joblessness still remains a problem. According to CLASP, low-wage workers that are laid off face a unique set of challenges. Individual states set their own guidelines to determine whether an unemployed worker qualifies for unemployment benefits, “most requiring UI applicants to earn a minimum amount and work a minimum number of hours in a calendar quarter or year.” These limits bar some part-time and lower-wage workers from qualifying. Perhaps due to persistently high unemployment rates or state-level budgetary crises, states have begun to make significant changes to eligibility for unemployment insurance. CLASP writes, “A recent study by Policy Matters Ohio shows that several states have raised earning requirements to receive UI benefits. Such high monetary eligibility standards make it harder for low-income jobless workers, who already have the hardest time making ends meet, to receive UI benefits.” CLASP goes on to state, “[Low-wage workers] may also be denied benefits for ‘non-monetary’ eligibility reasons that are related to the nature of the work or their personal circumstances. For example, if a worker cannot arrange childcare for variable shifts, she may be forced to quit her job, and therefore be denied UI benefits.”

As we consider these monthly reflections of our economy’s health, we remind our elected officials that they must act now on legislation that aims to create jobs and strengthen our economy for those who are at greatest risk of impoverishment and hardship, especially low-wage workers. As scripture tells us, “If, however, there is a needy person in any of your settlements, do not harden your heart and shut your hand against your needy kin. Rather you must open your hand and lend whatever is sufficient to meet the need.” (Deuteronomy 15:7-8)

You can find DHN’s Jobs Statement of Principles here.

American Friends Service Committee
Bread for the World
Church of the Brethren
Friends Committee on National Legislation
Interfaith Worker Justice
Jewish Council for Public Affairs
The Jewish Federations of North America
Mennonite Central Committee U.S. Washington Office
National Advocacy Center of the Sisters of the Good Shepherd
National Council of Churches
National Council of Jewish Women
NETWORK, A National Catholic Social Justice Lobby
The Office of Social Justice of the Christian Reformed Church
Presbyterian Church (U.S.A.)
Sisters of Mercy of the Americas, Institute Justice Team
Union for Reform Judaism
The Unitarian Universalist Association of Congregations
United Church of Christ Justice and Witness Ministries
The United Methodist Church General Board of Church and Society

Find out more.

March 18, 2013

Dear Senator:

As the Continuing Resolution winds its way through the House and Senate, it has come to our attention that the House of Representatives added $380 million for the Medium Extended Air Defense System (MEADS).

According to a March 14, 2013 op-ed in The Hill by retired United States Air Force Colonel Ron Wassom, “MEADS, the multi-national medium-range missile defense program among the U.S., Italy, and Germany, has routinely been over budget and behind schedule during its 18-year history. Some estimates put the cost overruns in excess of $2 billion. Not surprisingly, in 2011 the Pentagon cancelled the planned procurement of MEADS, stating that it could not afford it in this cost-conscious budget environment.”

You may be aware that Senate Armed Services Committee Chairman Carl Levin (D-Mich.) has called MEADS a “waste of money.”

Proponents of MEADS claim that the U.S. withdrawal requires spending $380 million in termination costs. The truth is that the U.S. can and should terminate this program without incurring this cost. Senator Kelly Ayotte (R-N.H.) has proposed an amendment to eliminate this funding and transfer the funding to pay for operations and maintenance.

We are asking you to support this amendment, as well as Senator Ayotte’s effort to get a vote on this amendment.

There are times when partisan politics divide us – this is not one of those times. Please support the Ayotte amendment to eliminate MEADS funding and please support the final termination of this program.

Sincerely,
 Council for a Livable World
 CREDO Mobile
 Friends Committee on National Legislation
 NETWORK, A National Catholic Social Justice Lobby
 Peace Action
 Peace Action West
 Physicians for Social Responsibility
 Progressive Democrats of America
 USAction
 Win Without War
 Women’s Action for New Directions

The Honorable Tom Harkin
U.S. Senate
731 Hart Office Building
Washington, D.C. 20510

Dear Senator Tom Harkin:

We are writing to thank you for the introduction of S.460, the “Fair Minimum Wage Act of 2013.” This legislation comes at a time of slow economic recovery. The lowest paid workers’ wages remain stagnant while the cost of living continues to rise. We welcome this opportunity to promote income equality and reduce poverty by giving thirty million workers a more just wage.  

As an organization of faith, we seek to eliminate hunger and poverty at home through economic policies that enlarge opportunities for all people. A parent working full time, year round with minimum-wage pay does not earn enough to meet their most basic needs. No one should earn so little for full time work that they live in poverty. 

Your legislation is an important step toward eliminating hunger and poverty, as it will help reduce economic inequality and increase pay equity. A recent study by the Economic Policy Institute found that the pay gap between workers at the bottom of the wage scale and those in the middle is due to the eroding purchasing power of the minimum wage over the past thirty years.(i) Increasing the minimum wage will also contribute to women’s pay equity, as 56 percent of workers who would benefit are women.(ii)

Raising the minimum wage is a more than a smart move; it is a moral imperative.

We support the action you are taking with S.460 and encourage your Senate colleagues to join you in this effort to promote fairness and expand economic justice.

Thank you,

Tila Neguse
Legislative Associate on Domestic Issues
Friends Committee on National Legislation

      245 2nd St. NE – Washington, D.C. 20002 – 202-547-6000 – www.fcnl.org

(i) Lawrence Mishel, “Declining value of the federal minimum wage is a major factor driving inequality,” Economic Policy Institute, February 21, 2013, available at: http://www.epi.org/publication/declining-federal-minimum-wage-inequality.
(ii) http://www.epi.org/publication/bp357-federal-minimum-wage-increase/