From Deseret News archives:

Utah services may face cuts

House spending plan could cost poor $135 million over 5 years

Published: Wednesday, March 30, 2005 11:38 p.m. MST
 |  E-MAIL | PRINT | FONT + - 
As much as $135 million might have to be cut from Utah programs for the poor in the next five years if what local and national human services policy analysts call a "disastrous" U.S. House spending plan goes through.

"It's wrong to say this is just speculative," said Sharon Parrott, an author of a report released Wednesday by the Center on Budget and Policy Priorities.

Parrott discussed the findings of state-by-state impacts of federal spending plans detailed in the report during a national teleconference with reporters.

On the same day, the leading local research and advocacy group Utah Issues released its projections of how Utah's most vulnerable populations would fare under the spending proposals that reduce domestic programs, increase money for homeland security and slash taxes for the nation's wealthiest.

And, they point out, the spending plans do not reduce the federal deficit.

Utah's potential impact under the House plan includes:

• $85 million to $113 million in reductions to Medicaid, which serves 189,000 children, elderly and people with disabilities

• Up to $26 million in reductions in food stamps. Roughly 123,000 individuals receive food stamp assistance

• $12.3 million in reductions to Temporary Assistance for Needy Families (TANF) and child care funding, impacting 123,000 parents and children.

Story continues below
Those are federal programs that participate on a "match" basis with states, with states chipping in a certain amount to then draw down federal dollars.

Advocates say decreases of this magnitude would cripple programs that truly help the working poor. In a worst case scenario, states would have to decrease benefits across the board for all, or new rules might come into play that bump people off eligibility lists altogether.

The crafting of the cuts is something Congress will wrangle over in the next weeks and could be implemented in a number of ways ultimately. But advocates warn the potential for drastic impacts on low-income families is already clear.

"The states stand to lose $4 billion in the next five years in key human services funding," Parrott said.

On top of the impact to state budget coffers and recipients of state services, Congress is also contemplating reductions in other programs that affect the low income directly — such as the Earned Income Tax Credit (EITC) and the Supplemental Security Income Program for the elderly and disabled poor.

An estimated 129,000 working families in Utah receive the EITC, which provides low-wage workers with tax relief. Another 21,000 Utahns rely on SSI benefits — which cover living expenses for the elderly, disabled and children.

Comments

You can be the first to comment on this story.

Image
Deseret Morning News graphic

previousnext

Latest comments

Utahn aiding poor

Louis may GOD bless you so much.The word of GOD says that it is more blessed...

BYU eager for crack at Oregon State

You Zoobs amaze me. We might not understand football but we do know that...

TCU versus BSU unpopular

Homers, if the rest of the country is so right about how good the BCS...

BYU eager for crack at Oregon State

Couldn't ask for a much better matchup then this one, going against Oregon...

Go Jazz!! Awesome game to watch!

None of the global warming models predicted steady or slightly-decreasing...

to oops!: Because it's not. Clearly you don't know the definition of...

I'm guessing as the season rolls on, USU's wings will feel more comfortable...

BCS reform still needed

All year long I have read numerous complaints from MWC fans that BSU didn't...

TCU versus BSU unpopular

at least it will be nice to see boise get killed by a real team, they play...

Advertisements