LEGISLATIVE ACTION


State jobs, services at risk in federal budget


By JOHN MURPHY Although the federal fiscal year began


October 1, 2010, the budget for the current fiscal year is still in flux and some of the changes could affect state and local government services and the PEF members who provide them. The House of Representatives passed


a federal budget resolution (H.R. 1) for the remaining seven months of the 2011 fiscal year that cuts approximately $64 billion (13.8 percent) from current spending levels for non-defense discretionary funding. These reductions in spending could slow economic recovery and reduce or eliminate some public services at the federal, state and local levels. Senate Democrats have opposed most


of the cuts, but would support a five- year freeze of domestic discretionary spending, as proposed by President Obama. PEF is working with its affiliates, the


American Federation of Teachers and the Service Employees International Union to advocate for a Senate bill that adequately funds the state and local government employees who deliver these services. PEF President Ken Brynien has


written to the state’s congressional delegation asking its members to vote down the proposed budget cuts because of how they may injure New York’s economy, public employees and the vital services they provide to New Yorkers. Among the House spending cuts most


significant for PEF Members are: • $2.5 billion from Community


Development Block Grant formula funding, federal aid that goes directly to local governments; • $1.1 billion from Head Start


programs; • As much as $1.7 billion from the


Social Security Administration, which may affect staff from its field offices, state disability-determination services, and disability hearing offices, causing serious delays in processing and payments; • A total of $1.2 billion (56 percent)


from the Clean Water and Drinking Water State Revolving Funds; • $5.7 billion from Pell grants; • Approximately $197 million (19


percent) from the Byrne Justice Assistance Grant Program that funds state and local law enforcement. PEF members administer these grants at the state Division of Criminal Justice Services; • Some funding for


programs under the Affordable Care Act (health reform law), including $1 billion funding from community health centers; • $1.1 billion (43 percent) from the


public housing capital fund and $149 million from public housing operating budgets. This may affect PEF members at the Albany Housing Authority; • All funding under the Workforce


Investment Act (WIA) for job training. This would eliminate training for new enrollees and force current participants to leave training, and could result in the


closing of hundreds of workforce offices; • $12.3 billion from transportation


funding, and the elimination of $1.1 billion in funding for grants and loans for surface-transportation projects. PEF is particularly concerned for the


fate of one state agency that has been endangered by changes in the administration of federal student aid and loans. These changes began before the current federal budget issues arose. In February, PEF was notified the


state Higher Education Services Corporation (HESC) must again rebid for a contract with the U.S. Department of Education. HESC was also notified the federal government is preparing a request for proposals on an additional job for which HESC could bid. According to HESC’s advocate in


Washington, HESC must bid again to determine which services it may provide. HESC’s priority is still to secure the federal contract for administering collection of payments on student loans. The collections contract is HESC’s main source of funding and supports PEF positions at


the state agency. Without it, the agency’s future viability would be jeopardized. PEF (and HESC) have been


communicating with Sens. Chuck Schumer and Kirsten Gillibrand and Congressmen Timothy Bishop and Paul Tonko regarding the issue. Brynien also wrote to all members of


the state’s congressional delegation asking for their support in this matter.


WELCOMEABOARD—New Executive Boardmembers take the oath of office at the board’smeeting in March at the Crowne Plaza inAlbany.


www.pef.org


—Photo by Richard Dillard The Communicator April 2011—Page 15


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