New Orleans, LA
At the beginning of 2002, states collectively face over $40 billion in budget deficits, and the shortfall could double by 2003. From 1995 through 2001, states enacted tax cuts totaling almost $50 billion, and most of those tax cuts went disproportionately to wealthier individuals and businesses. State and local governments are facing increased demands for health care and other social services during the current economic downturn, with Medicaid costs growing at double-digit rates in most states. Working families that have lost jobs need unemployment and other supports. At the same time, important progress in education and other investments in infrastructure are threatened by huge budget cuts at the state and local levels. Jobs of health care workers, public employees, construction workers and others are at risk as a result of budget cuts; their disappearance would exacerbate the recession further. On top of the recession, states and localities face increased spending demands related to homeland security.
President Bush's proposed budget for fiscal year 2003 shortchanges important domestic priorities, and the massive tax cuts favoring very wealthy individuals that President Bush pushed through Congress in 2002 now threaten Social Security and Medicare, as well as our capacity to meet such basic needs as investing in schools and public infrastructure.
The AFL-CIO recognizes that federal, state and local spending supports the jobs of millions of union members and other workers. As if last year's tax cut was not irresponsible enough, proposals in Congress would cut taxes on corporations and accelerate cuts for wealthy individuals. These mislabeled "stimulus" ideas threaten states with billions of dollars more in revenue losses they cannot afford.
THEREFORE BE IT RESOLVED
The AFL-CIO and its member unions will lobby Congress to provide relief to state and local governments to protect public services. Specifically, the AFL-CIO supports the State Budget Relief Act of 2001, H.R. 3414, which would help states meet rising costs in their Medicaid programs and prevent cutbacks in vital health care services. We also urge support of any similar legislation that provides fiscal relief to states and localities. The AFL-CIO strongly opposes President Bush's 2003 budget proposal, which shortchanges job training, transportation, health care and education. The AFL-CIO and its member unions oppose any additional tax cuts or accelerations of tax cuts that would result in state revenue losses.
The AFL-CIO and its member unions recognize that in many state and local situations, new revenue must be part of any solution that protects valued public services and jobs. The AFL-CIO and its member unions will advocate fair tax policies at the state and local levels that do not place undue burdens on low-income and working families and that require business to pay its fair share. The AFL-CIO and its member unions will make every effort to reach consensus at the state level on legislative priorities that recognize the importance of all public services. In making decisions regarding endorsements and other support for candidates and elected officials at the state and local levels, the AFL-CIO and its member unions will consider whether they have fought to maintain quality public services and investments during the current recession.