1. 2012 U.S. Poverty Campaigns Overview of Broader Budget Issues

2. Budget Issues Timeline 2 August 2011 Budget Control Act of 2011 mandates $1 trillion in cuts plus another $1.2 trillion to be outlined by bipartisan “Super Committee” November 2011 Super Committee fails to reach a deal so across the board cuts (sequestrati on) will take affect in 2013 March 2012 House passes the House Republican Budget (Ryan Budget June-July 2012 Full Senate and House Ag Cmte pass cuts to SNAP in their respective Farm Bills Nov 6, 2012 Election Day Nov-Dec 2012 Lame Duck session of Congress Dec 31, 2012 Bush tax cuts and ARRA tax provisions expire Jan 1, 2013 Automatic “Sequestra tion” cuts begin

3. House Republican Budget  Medicaid: Cut by $810 billion over ten years; converted to a lump sum “block grant” to states  14-27 million would lose coverage  SNAP: Cut by $134 billion over ten years; converted to block grant  8-10 million would lose benefits 3  Non-Defense Discretionary Programs (NDD): Funding cut by nearly $300 billion over ten years  ACA: Repeals health reform, denying 32 million health coverage  Taxes: Millionaires would get an additional $265,000 tax cut, while middle income families would see their taxes increase

4. Attacking SNAP (Food Stamps)  SNAP serves over 46 million per month, half of them children  Average benefit is $1.50 per meal per person  76 percent of SNAP households include a child, an elderly person, or a disabled person  In 2010, SNAP lifted 4 million people out of poverty 4

5. Attacking SNAP (Food Stamps)  Senate Farm Bill  Cuts SNAP by $4.5 billion over ten years  500,000 people will see their SNAP benefits drop an average of $90 per month  Gillibrand (D-NY) amendment to restore SNAP cuts was defeated  Passed full Senate 64-35 5  House Farm Bill  Cuts $16.5 billion from SNAP over ten years (includes Senate cuts)  2-3 million people will lose SNAP benefits  280,000 children will lose access to school meals  House Ag Cmte passed it 31-15  Future of either bill unsure

6. The Bush Tax Cuts  In December 2012, all of the Bush tax cuts from 2001 and 2003 will expire  38 percent of benefits went to the top 1 percent  Tax cuts have cost nearly $2 trillion in revenue  Senate to vote on President Obama’s plan to extend tax cuts for income up to $250,000 (including EITC and CTC) as soon as this week  House to vote on plan to extend all the Bush tax cuts; excludes extending the EITC and CTC provisions we support 6

7. Sequestration  Automatic across the board cuts beginning in January 2013 (mandated under BCA if Super Committee failed)  Approximately 9 percent from both defense and non-defense programs (about $55 billion each in 2013)  Some programs like Medicaid, SNAP, EITC, CTC, Social Security, and child nutrition are exempt from sequestration  Members of Congress feeling a lot of pressure to undo the defense cuts 7

8. The “Fiscal Cliff” 8  End of Bush tax cuts + sequestration = recession  More a slope than cliff — full effects will not be felt for months  Plenty of time for Congress to act  Some of Bush tax cuts will be extended  The fiscal cliff talk is more of a scare tactic to push Congress into enacting bad policy before January

9.  RESULTS belongs to the SAVE for All Coalition  Deficit reduction must protect low and moderate income Americans and not increasing poverty  Oppose cuts to SNAP, Medicaid, EITC/CTC, and other programs that help lift and keep people out of poverty  Oppose block granting Medicaid and SNAP  Deficit reduction must include new revenue  New revenue must comprise at least half of deficit reduction  Allow the Bush tax cuts for the top 2 percent to expire  Closing tax loopholes  Deficit reduction must create jobs  Investments in infrastructure, rebuilding schools, etc  Deficit reduction must eliminate wasteful military spending RESULTS on Deficit Reduction 9

10. RESULTS/RESULTS Educational Fund 1730 Rhode Island Ave NW, Ste 400 Washington DC 20036 www.results.org RESULTS Economic Opportunity Campaign Contacts: Meredith Dodson, dodson@results.org, (202) 782-7100, x116 Jos Linn, jlinn@results.org, (515) 288-3622 www.results.orgdodson@results.orgjlinn@results.org 10