Could be $7.8 Billion Lower than FY10
As we reported last month – House approves cutting budget to 2008 level – the House Appropriations Committee released yesterday the overall spending levels for each of the twelve subcommittees. Compared to the FY 2010 approved domestic budget the cuts total $42.644 billion.
However, Transportation and HUD subcommittee received the largest reduction.
Although the reduction to the Transportation and HUD was listed as 17% or $11,575 billion compared to the approved FY 2010 budget, the two departments received 27% of the total projected reduction in non-security discretionary spending.
The HUD budget comprises 68% of the total for the subcommittee. It is unclear how the reduction will be made between the two departments. However, if it proportionally HUD’s budget would be reduced by $7.8 billion.
Although the reduction for Transportation and HUD is slightly smaller than the original plan to cut the budget by 21%, the impact as we indicated previously – House Plan for Budget Cuts Impact on NJ – could cost our state more than a hundred million dollars a year.
What Happens Next?
- The Transportation and HUD subcommittee will draft the FY 2011 T-HUD funding bill by next week. This will specify not only how much each department would be cut but how those reductions could affect specific programs.
- The full House is expected to debate and vote on the FY 2011 funding bill the week of February 14, the same week that the President’s FY 2012 budget proposal will be released.
- House leaders have indicated that they will allow a really open amendment and debate process, which means that even deeper cuts may be proposed and voted on during the week of February 14.
- After the House passes their budget, the Senate will begin work on their version of the budget, which is unlikely to accept such deep cuts.
It remains to be seen how the two chambers will iron out their differences.
With depressed wages, stagnant unemployment, unrelenting housing cost burden, and the lagging pace of the economic recovery this is not the time to be making dramatic cuts in federal spending that directly impacts the lives of the most vulnerable. Balancing the budget at this time could bring about increases in homelessness and a heightened risk of homelessness for more and more Americans.