WASHINGTON, D.C. -- Representative Edward J. Markey (D-MA), a senior member of the House Energy and Commerce and Natural Resources Committees, today reacted to the President’s budget proposal that was delivered to the Congress this morning.  Rep. Markey highlighted a number of key programs that affect Massachusetts in the Fiscal Year 2008 budget that are slated for large cuts or complete elimination.  Rep. Markey, also a co-chair of the Bipartisan Task force on Nonproliferation and a senior member of the House Homeland Security Committee, also raised serious concerns about homeland security and nuclear nonproliferation programs that were being cut or eliminated completely.  Rep. Markey also credited the administration will a few policy about-faces, including positive ones regarding royalty relief and fee collection from oil and gas companies.

Markey said, “The Bush budget for 2008 look a lot like his previous budgets - misplaced priorities, misguided cuts, and unwarranted increases for escalating the war in Iraq.  The Bush budget is bad for Massachusetts’ children, seniors, and families.  It cuts many sorely-needed programs like Medicare, Medicaid, S-Chip, public television, cancer research, LIHEAP; non-proliferation, emergency medical response, and clean water programs.”

Provisions of the Administration FY08 Budget expected to have a significant impact on Massachusetts include:

LIHEAP:  The President requested $1.782 billion for the Low Income Home Energy Assistance Program (LIHEAP), a whopping 56.35% cut from the $3.161 billion provided to the program in fiscal year 2006, and a $379 million cut from the level provided in the FY07 Continuing Resolution that passed the House last week (which included $2.161 billion for LIHEAP).  

Mass. Energy Assistance Impact:  Such a federal cut would result in an allocation of only $62 million in LIHEAP funding for FY 08, a cut of $126.5 million from Massachusetts’ FY 06 LIHEAP funding.

Medicare, Medicaid, and S-Chip:  The 2008 budget cuts $75.8 billion from Medicare and $25.7 billion from Medicaid.  The budget also cuts $223 million out of the State Children’s Health Insurance Program (S-Chip). It also provides less than one third of what is needed to keep all kids who currently get health insurance through S-Chip insured.

Mass. Health Impact:  Massachusetts hospitals’ funding will be cut by $27.8 million in FY 08 and over $424 million in the next five years. These cuts are on top of the approximately $150 million that Massachusetts hospitals will lose from the new Medicaid rule that the President proposed on January 18.

Clean Water Funds:  The FY 08 Budget requests $687.5 million for the Clean Water State Revolving Fund, a cut of $193.4 million from the $887 million provided to this program in FY06, and a whopping $642.3 million cut from the level of funding provided this program in FY01.  The Clean Water State Revolving fund provides low interest loans to communities to assist them in building or renovating waste water treatment facilities.

Mass. Clean Water Impact:  Would result in a cut of $6.75 million from the FY06 appropriation, and a cut of $22.4 million from the level of funding provided this program in FY01. 

Metropolitan Medical Response System (MMRS):  The FY08 budget eliminates all funding for MMRS, the only federal program that helps first responders, medical personnel, emergency management workers, businesses and other stakeholders develop effective, integrated capabilities to minimize casualties in the event of a terrorist attack using a weapon of mass destruction, a public health crisis such as a pandemic flu or a natural disaster such as a hurricane.  After the Bush Administration deleted all MMRS funding in its budget last year, Rep. Markey led the successful effort in Congress to reverse the Administration’s unwise decision.  As a result, Congress provided a total of $32 million in MMRS funding to be equally divided among each of the 124 MMRS jurisdictions around the country. 

Mass. Emergency Response Impact:  Massachusetts received more than $774,000 in MMRS funding this year equally divided among the Boston, Springfield and Worcester areas.  In FY 08 Massachusetts loses all funding.  Since its inception, MMRS has provided more than $5 million in funding for Mass. emergency personnel.

Other provisions of the Budget request include:

NIH Research Funding:  The FY 08 budget provides $4.13 billion less than the Congressionally- authorized level for the NIH research.  It also cuts cancer research funding by $9 million.  Rep. Markey has repeatedly fought to increase the NIH budget above the rate of inflation.  

Public Television:  Bush’s budget includes a $110 million cut for the Corporation for Public Broadcasting (CPB) in 2008, from a 2006 overall budget of $460 million.  CPB is the U.S.-tax payer funded agency that provides critical dollars to public media across the country.

Rep. Markey said of the cuts to the Corporation for Public Broadcasting, “In a 24-7 television world with content often inappropriate for young children, the public broadcasting system represents an oasis of quality, child-oriented educational programming.  We owe America’s children and their parents this free, over-the-air resource.”

Securing Loose Nukes and Building New Ones:  The budget request slashes funds for securing loose nukes, including in the former Soviet Union; and dramatically increases funds for the design of an entirely new set of American nuclear warheads.

Rep. Markey chided the Administration’s misplaced nuclear priorities, “On nuclear weapons, President Bush’s priorities still are completely askew.  The President wants us to slash funding to secure loose nuclear weapons and materials, and boost funding for his program to design and build thousands of new, unnecessary nuclear warheads by more than 220%.  Bush’s budget request for these programs endangers the long-term nuclear security of the United States.”

There is some good news in the President’s budget with regard to oil and gas exploration, royalty relief and processing fees:

·        Including a statement in the budget saying, “Additional royalty relief for oil and gas exploration is unwarranted in today’s price environment.”  Rep. Markey fought for provisions in H.R. 6, the Clean Energy Act of 2007, that would strike the expansion of Outer Continental Shelf (OCS) oil and gas royalty relief and prohibit the federal government from charging companies fees when they apply for drilling permits on federal lands.
·        The FY 08 budget reverses a provision inserted into the Energy Policy Act of 2005 that prohibits the Minerals Management Service from charging oil and gas companies a fee to process their permits to drill on public land. Rep. Markey led the fight against this additional giveaway to the oil and gas industry, which will generate an additional $20 million a year.
·        The budget also raises royalty rates paid by oil and gas companies for deepwater offshore drilling in the Gulf of Mexico from 12.5% to 16.67%.  Rep. Markey has repeatedly fought to get oil companies to pay their fair share to drill on public lands. Last year, during consideration of a Republican bill to expand offshore drilling, Rep. Markey offered a successful amendment to block a quiet attempt by Republican leaders to lower the offshore royalty rate paid by oil and gas companies to 12.5% everywhere, including in shallow waters.  Previous Interior Dept. figures estimate that royalty collection could mean another $4.5 billion over 20 years.  

“It is about time the administration realized that it could not justify huge subsidies for an oil and gas industry that is turning profits of historic proportions.  These relief measures that are rolled back and fee collection measures that are put in place are a small step forward towards reclaiming billions owed to taxpayers by this behemoth energy companies,” Rep. Markey concluded.