Policy group says Idaho can’t absorb Trump budget plan

The Idaho Center for Fiscal Policy believes the Trump Administration’s proposed budget would over-burden Idaho’s state budget. The center is a nonprofit, non-partisan organization dedicated to analyzing state fiscal issues. Center Director Lauren Necochea said Idaho could not absorb the costs incurred if a version of the budget is approved by Congress. “This proposed budget includes historically unprecedented cost shifts to the states and unprecedented cuts to essential public services that working Idahoans rely on to make ends meet and. The tax cuts for the wealthy come at a huge cost to children, seniors, Idahoans with disabilities, and community investments that benefit all of us,” Necochea continued. Commenting on the budget plan, 2nd District Congressman Mike Simpson said he would give it serious thought and discussion. “The Administration deserves credit for taking our nation’s fiscal crisis seriously, but I hope that in the coming years we can begin the conversation on addressing the real drivers of our debt, which remain untouched by the yearly appropriations process,” said Simpson. “Mandatory programs remain on autopilot and continue to grow, dwarfing all other government programs in terms of spending. That is why I will continue to advocate for “going big” with a package of spending cuts paired with tax and entitlement reform, as it is the only way we will truly put our country back on solid fiscal footing.” The Idaho Center for Fiscal Policy outlined its key takeaways: “Significant cuts to Medicaid and CHIP ● Cuts to these programs, which serve primarily children and people with disabilities, are steeper in the Trump proposal than the American Health Care Act passed by the House in April. The budget proposal would add an additional $627 billion in cuts to Medicaid on top of House-passed cuts of $839 billion. According to the Urban Institute, Idaho would shoulder an estimated $1 billion cost-shift from the AHCA without factoring in these new cuts. ● Idaho would see a rise in CAT fund costs. After the implementation of Idaho’s health insurance exchange, the CAT fund saw $20 million in savings between 2013 and 2016. We could see a full reversal of this gain with the cuts proposed, plus more costs as Idahoans receiving Medicaid lose access to care. ● Cuts to Medicaid could mean that schools have fewer dollars to draw on to cover medical services for students with disabilities. Under obligation to provide these services, districts would need to seek more local dollars to make up for the shortfall. ● The Children’s Health Insurance Plan (CHIP) would see a 20 percent reduction overall. In the current federal budget year – FY2017 – Idaho is allocated $75.5 million dollars for CHIP. Fewer resources for public and charter schools and higher education — Idaho would receive $16.1 less in federal FY2018 under this budget for a variety of programs that fund Idaho K-12 schools, including cuts to funding in special education and Title I, which is used to help educate low-income children. This would force schools and districts to stretch budgets further. ● Federal funds make up about 10 percent of per-student funding in Idaho. ● In Idaho, Pell grant aid – which helps low-income students complete college – would be increased by $2.2 million in FY2018 and work-study funding reduced by $1.2 million, hurting Idaho’s efforts to get more young people into postsecondary education programs. The Federal Supplemental Educational Opportunity Grant program, similar to Pell, would be reduced by $2.26 million. ● Idaho received $5.7 million for 21st Century Learning Centers in federal FY 2016. This program would be eliminated entirely in the proposed budget. Large cuts to the Supplemental Nutrition Assistance Program (SNAP) ● As of February 2017 about 76,000 households in Idaho participated in SNAP. Participation fluctuates with the health of the economy. Tying the program to state finances would hinder SNAP’s ability to respond to economic downturns. ● In 2016, the program contributed about $1.28 per person per meal in Idaho. The budget’s proposal would further reduce this already lean program. ● In 2016, the program issued $255 million in benefits to Idaho. If Idaho is required to shoulder 25% of the cost of the program by 2028 as proposed, it would need to shift millions away annually from other funding priorities in order to feed low-income seniors and children. Over a 10-year period, Idaho would absorb $445 million in cost-sharing for SNAP. ● Idaho already has relatively restrictive eligibility for SNAP, applying asset test to categorical eligibility.” Congress is expected to begin its budget debate in June.