May 02, 2005

Shifting Costs, Attacking Poor Families and Single Parents

Nothing comes for free. Proponents of the new federal budget resolution will say that they've made hard decisions without painful tax hikes. But as political leaders and the media in the states are rapidly becoming aware, the fallout from the budget resolution's spending cuts is being felt right now in state houses across the nation.

New Hampshire, already facing difficult choices on health care, is demonstrative. If TANF reconciliation goes the way most observers think it will, "more than $30 million" in costs will shift from the Federal Government to the Granite State over the next two years.

This is a relatively small example, considering the whole national stage, but it's a big deal for New Hampshire and it reflects the way more and more funding decisions are being made in government. Politicians talk about reducing costs, but mostly they just shift them.

Also, New Hampshire has more stringent restrictions on who can receive aid. So even while more costs are being shift down to the states, many people who need aid the most--like low-income single parents--are likely to to lose financial assistance.


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