Introducing Senator Feinstein
June 20, 2005
Dear Mr. Chu:
Thank you so much for writing me to share your views regarding
the FY 2006 Federal Budget. I appreciate hearing from you on this
important issue.
As you may know, Congress passed the FY 2006 Federal Budget
Conference Report on April 28th. I have attached my thoughts on the
Federal budget. I hope that this will provide some insight into what this
$2.6 trillion budget will mean for our nation.
Once again, thank you for writing. I will be sure to keep your
thoughts in mind as the Federal budget process continues. If you have
any further questions regarding this issue, please feel free to call my
Washington, D.C. staff at (202) 224-3841.
Senator Feinstein's Statement:
The FY 2006 Budget Conference Report Does Not Represent Our
Nation's Priorities
"Mr. President, I rise today to speak about the Fiscal Year 2006
budget - a budget which does not represent our Nation's priorities. In
addition, this budget piles debt upon debt and then passes it on to our
children and grandchildren who will have to pay for this irresponsibility.
Perhaps more disturbing, this budget puts tax cuts for the
wealthiest Americans ahead of the interests of working families.
Some of my colleagues have consistently talked about the need
to curb and cut social programs in healthcare, job training, and
community development. However, I want to highlight what these cuts
actually mean to people. We should not hide behind titles and statistics.
We ought to truly understand how this budget affects the lives of those
who have trusted Congress with their well-being.
First and most importantly, this budget resolution cuts Medicaid
by $10 billion. Medicaid provides a critical safety net for 53 million
Americans including more than 6 million in California. It provides
health and long-term care coverage for more individuals than any other
program. For most individuals, it is the health insurer of last resort.
I find it ironic that next week is "Cover the Uninsured Week," a
week devoted to calling attention to the 45 million uninsured Americans,
twenty percent of whom are children, and millions more who are under-
insured. Because of this budget resolution, the number of uninsured
Americans will increase.
To give you a sense of the magnitude of the Medicaid program,
consider that Medicaid now provides health care for 1 in every 5
children. It pays for one-third of all births in this country, almost 40
percent of all long-term care expenses, a sixth of all drug costs, and half
of the States' mental health services. It also is the largest payer of
services for AIDS patients.
And who is at risk in California under this budget resolution?
* Children
* Pregnant Mothers
* Poor Elderly
* Blind and Disabled Communities
* Military Families
* Our Parents and Grandparents in nursing homes
* Employees working in long-term care facilities
* Community Hospitals
* Community Clinics and Health Centers
And, that's not all. The community hospital structure in the state
of California operates based on a delicate balance of funding streams.
$10 billion in Medicaid cuts threatens that delicate balance and it will
have a ripple effect on many sectors, not just community hospitals.
Public hospitals in California rely on Medicaid as their primary
source of funding - 65% of their patients are either insured through
Medicaid or have no health insurance.
Medicaid allows patients to access the health care services they
need to stay healthy by providing chronic care management,
immunizations, cancer screenings, and outpatient care. These are
necessary to keep people from getting their health care in hospital
emergency rooms where costs are exponentially higher.
This is coming at a time when our health care system has already
faced major reductions. Seven emergency room departments in
California have closed over the past 18 months. Six of the seven were in
Los Angeles County. This is in large part due to the low Medicaid
reimbursement rates and the high number of uninsured and
uncompensated care costs.
Last February, the L.A. Times reported that UCLA Healthcare,
the largest medical complex in the University of California system,
would soon be eliminating about 400 full-time positions, and again, this
is due to low Medicaid reimbursement rates and an unexpected increase
in the number of indigent patients seeking care at UCLA hospitals.
I fear this situation will only worsen under this budget
resolution.
California already ranks dead last among states for Medicaid
spending per recipient and I am told it would take more than $1 billion to
lift California out of that position.
To make matters worse, California's Federal Medical Assistance
Percentage, or FMAP, is at 50%. That is the lowest allowable
percentage under federal law.
This budget resolution does not only affect healthcare. In
community development, which I personally understand from my
experience as a Mayor, this budget drastically cuts the Community
Development Block Grant (CDBG) program. This program is vital for
low-income families and individuals in more than 1,100 entitlement
communities, urban counties and states, and more than 3,000 rural
communities.
In the last budget, my home state of California received over
$526 million in CDBG funds, accounting for 12.8 percent of the total
$4.1 billion grant program.
Over the past five years, the diverse use of CDBG funds have
allowed Los Angeles County to develop almost 9,000 affordable housing
units, to create and preserve over 2,000 jobs, to remove over 32 million
square feet of graffiti, and to provide loans and technical assistance to
over 5,000 businesses among other programs.
This budget is risking over 90,000 jobs and reducing much-
needed training for 80,000 people. Basically, it is cutting employment
opportunities to motivated people who seek training and want to work.
These people are asking for our help and we are shutting the door to their
future.
In terms of small businesses, this budget resolution cuts financial
assistance to small businesses, the engine of our economic future, which
comprises over 90 percent of all businesses in California.
In housing, only half of the 80,000 promised vouchers for low-
income families and individuals will be restored under the Section 8
voucher program. These housing vouchers are essential to providing
approximately 2 million low-income families, senior citizens and people
with disabilities with a safe and affordable place to live.
In sum, this budget asks those communities who are in desperate
need of medical services, housing, economic development, and job
training, to fund tax cuts for the wealthiest Americans, to pay for the war,
and to take the brunt of our budget cuts. This budget resolution will
disproportionately affect children, poor working families, the elderly and
many others in California. I must object to a budget that protects $70
billion in tax cuts and mandates more than $10 million in needed
services. I cannot and in good conscience support a budget that
continues to ask even more from those who are less able to give."
Sincerely yours,
Dianne Feinstein
United States Senator
Dear Mr. Chu:
Thank you so much for writing me to share your views regarding
the FY 2006 Federal Budget. I appreciate hearing from you on this
important issue.
As you may know, Congress passed the FY 2006 Federal Budget
Conference Report on April 28th. I have attached my thoughts on the
Federal budget. I hope that this will provide some insight into what this
$2.6 trillion budget will mean for our nation.
Once again, thank you for writing. I will be sure to keep your
thoughts in mind as the Federal budget process continues. If you have
any further questions regarding this issue, please feel free to call my
Washington, D.C. staff at (202) 224-3841.
Senator Feinstein's Statement:
The FY 2006 Budget Conference Report Does Not Represent Our
Nation's Priorities
"Mr. President, I rise today to speak about the Fiscal Year 2006
budget - a budget which does not represent our Nation's priorities. In
addition, this budget piles debt upon debt and then passes it on to our
children and grandchildren who will have to pay for this irresponsibility.
Perhaps more disturbing, this budget puts tax cuts for the
wealthiest Americans ahead of the interests of working families.
Some of my colleagues have consistently talked about the need
to curb and cut social programs in healthcare, job training, and
community development. However, I want to highlight what these cuts
actually mean to people. We should not hide behind titles and statistics.
We ought to truly understand how this budget affects the lives of those
who have trusted Congress with their well-being.
First and most importantly, this budget resolution cuts Medicaid
by $10 billion. Medicaid provides a critical safety net for 53 million
Americans including more than 6 million in California. It provides
health and long-term care coverage for more individuals than any other
program. For most individuals, it is the health insurer of last resort.
I find it ironic that next week is "Cover the Uninsured Week," a
week devoted to calling attention to the 45 million uninsured Americans,
twenty percent of whom are children, and millions more who are under-
insured. Because of this budget resolution, the number of uninsured
Americans will increase.
To give you a sense of the magnitude of the Medicaid program,
consider that Medicaid now provides health care for 1 in every 5
children. It pays for one-third of all births in this country, almost 40
percent of all long-term care expenses, a sixth of all drug costs, and half
of the States' mental health services. It also is the largest payer of
services for AIDS patients.
And who is at risk in California under this budget resolution?
* Children
* Pregnant Mothers
* Poor Elderly
* Blind and Disabled Communities
* Military Families
* Our Parents and Grandparents in nursing homes
* Employees working in long-term care facilities
* Community Hospitals
* Community Clinics and Health Centers
And, that's not all. The community hospital structure in the state
of California operates based on a delicate balance of funding streams.
$10 billion in Medicaid cuts threatens that delicate balance and it will
have a ripple effect on many sectors, not just community hospitals.
Public hospitals in California rely on Medicaid as their primary
source of funding - 65% of their patients are either insured through
Medicaid or have no health insurance.
Medicaid allows patients to access the health care services they
need to stay healthy by providing chronic care management,
immunizations, cancer screenings, and outpatient care. These are
necessary to keep people from getting their health care in hospital
emergency rooms where costs are exponentially higher.
This is coming at a time when our health care system has already
faced major reductions. Seven emergency room departments in
California have closed over the past 18 months. Six of the seven were in
Los Angeles County. This is in large part due to the low Medicaid
reimbursement rates and the high number of uninsured and
uncompensated care costs.
Last February, the L.A. Times reported that UCLA Healthcare,
the largest medical complex in the University of California system,
would soon be eliminating about 400 full-time positions, and again, this
is due to low Medicaid reimbursement rates and an unexpected increase
in the number of indigent patients seeking care at UCLA hospitals.
I fear this situation will only worsen under this budget
resolution.
California already ranks dead last among states for Medicaid
spending per recipient and I am told it would take more than $1 billion to
lift California out of that position.
To make matters worse, California's Federal Medical Assistance
Percentage, or FMAP, is at 50%. That is the lowest allowable
percentage under federal law.
This budget resolution does not only affect healthcare. In
community development, which I personally understand from my
experience as a Mayor, this budget drastically cuts the Community
Development Block Grant (CDBG) program. This program is vital for
low-income families and individuals in more than 1,100 entitlement
communities, urban counties and states, and more than 3,000 rural
communities.
In the last budget, my home state of California received over
$526 million in CDBG funds, accounting for 12.8 percent of the total
$4.1 billion grant program.
Over the past five years, the diverse use of CDBG funds have
allowed Los Angeles County to develop almost 9,000 affordable housing
units, to create and preserve over 2,000 jobs, to remove over 32 million
square feet of graffiti, and to provide loans and technical assistance to
over 5,000 businesses among other programs.
This budget is risking over 90,000 jobs and reducing much-
needed training for 80,000 people. Basically, it is cutting employment
opportunities to motivated people who seek training and want to work.
These people are asking for our help and we are shutting the door to their
future.
In terms of small businesses, this budget resolution cuts financial
assistance to small businesses, the engine of our economic future, which
comprises over 90 percent of all businesses in California.
In housing, only half of the 80,000 promised vouchers for low-
income families and individuals will be restored under the Section 8
voucher program. These housing vouchers are essential to providing
approximately 2 million low-income families, senior citizens and people
with disabilities with a safe and affordable place to live.
In sum, this budget asks those communities who are in desperate
need of medical services, housing, economic development, and job
training, to fund tax cuts for the wealthiest Americans, to pay for the war,
and to take the brunt of our budget cuts. This budget resolution will
disproportionately affect children, poor working families, the elderly and
many others in California. I must object to a budget that protects $70
billion in tax cuts and mandates more than $10 million in needed
services. I cannot and in good conscience support a budget that
continues to ask even more from those who are less able to give."
Sincerely yours,
Dianne Feinstein
United States Senator