Budget could be good for Michigan, nation
I commend the Obama Administration for the release of the President’s fiscal year 2011 budget. With unemployment at nearly 10 percent and small businesses struggling to come out of this recession, President Obama has had to balance investments that will help our economy recover, while also committing to decreasing the federal deficit (by almost $300 billion dollars). There is no question that neither of these goals can be achieved overnight, however, today’s proposal will put us on the right path in both areas, while providing critical support for our families during this difficult times.
Help for Michigan:
This budget continues the broadest tax cut in American history, going to 110 million American families – including 3.7 million in Michigan. And Michigan residents will see more than extra money in their pockets. The budget includes additional funds for construction and improvements to the State’s roads, highways, and airports ($1.3 billion) as well as money to modernize and expand clean, safe drinking water across Michigan ($122.5 million). The budget also promises Michigan a much needed boost for housing assistance ($501.6 million).
Education:
To attract industries and employers of the future, we must have the talent pool that is trained to compete with our foreign counterparts. This budget recognizes this by investing $28 billion, a $3 billion increase, in education programs authorized by the Elementary and Secondary Education Act. This is a record investment in K-12 education in this country. Under this proposal Michigan would receive $1.8 billion to be used to implement higher education standards, turn around low-performing schools, increase the number of effective teachers, and overall reform our schools so that our children receive a quality education. Further, the Administration proposes a $17 billion increase in Pell Grant funding in order to help those most in need receive a higher education, under this proposal Michigan will receive $1.2 billion.
This will directly help more than 317,000 students in Michigan to afford college, and assist the nearly 21,000 eligible in Michigan’s 15th District for the 2010-2011 school year. The President’s budget will also implement a new American Graduation Initiative that will help to reach the President’s goal of graduating five million more students by 2020, ensuring that all students who want to go to college can.
Energy:
The Obama Administration’s commitment to work with Congress to reduce greenhouse gas emissions by 17 percent in 2020 and by more than 80 percent in 2050 is a welcome one. This will be accomplished in part by the $144 million investment in research, development and demostrations projects in smart-grid technologies, the $5 billion expansion of the Advanced Energy Manufacturing Tax Credit and $2.4 billion dedicated to energy efficiency and renewable energy programs. Through these programs Congress and the Administration will continue to stimulate and support the development of clean energy here at home.
Environment:
As a Member of Congress from the Great Lakes, I am pleased to know that the Obama Administration places a high priority on restoring our Great Lakes and preventing the spread of invasive species. The inclusion of $300 million for the Great Lakes, a decrease of $175 million from FY10 is disappointing, especially since Environmental Protection Agency (EPA) is the lead agency dealing with preventing the Asian carp from entering our Lakes. Rest assured I will continue to work with my colleagues to guarantee that the EPA, Fish and Wildlife Service and the Army Corps of Engineers have the resources they need to prevent the spread of this predator.
Food Safety:
The President’s budget includes $1.4 million – a 30 percent increase – to improve our food safety systems. In 2009, the House of Representatives passed a food safety bill that I sponsored that will further prevent the outbreak of food born illnesses. I urge the Senate to quickly pass the food safety legislation so that the Food and Drug Administration has the proper authorities and funding to protect America’s food supply.
Health Care:
If we are to truly get serious about the deficit, we must press ahead on comprehensive health care reform. The main reason our federal budget is on an unsustainable path is due to the rising costs of health care, which will only get worse as our population ages. As it stands now health care costs consume more than 16 percent of the GDP. The Congressional Budget Office predicts that if we do nothing, health care costs will grow to 25 percent in 2025, 37 percent in 2050, and 49 percent in 2082. We are closer to enacting comprehensive health care reform than ever before. I applaud the President’s commitment to health care reform and urge my colleagues to forge ahead so that we can get a bill to the President’s desk this year.
I am also pleased that the President’s budget includes $25.5 billion for a six-month extension of the temporary increase in the Federal Medicaid match from the American Recovery and Reinvestment Act (ARRA). Our states, and particularly my state of Michigan, face a severe budget crisis. These additional funds will help states continue to provide medical care to children and families helped by Medicaid. There is $8.4 billion for Michigan to provide health coverage to low-income children and families in this budget.
Helping Families in Need:
Like the House-passed Jobs for Main Street legislation, the Obama Administration also supports extending emergency unemployment insurance benefits, COBRA tax credits, and the Making Work Pay Tax Credit to ensure that our families that are still hurting will continue to receive assistance from the federal government. This short-term relief will help our families to prepare for the long-term, by allowing them to stay in their homes and be seen by their doctors.
Homeland Security:
I am pleased to see the Administration dedicate up to $734 million to deploy 1,000 new Advanced Imaging Technology screening machines at airports across the country. This deployment, along with new explosive detection equipment, will ensure that our airport personnel have the technology they need to keep our airports safe. It is my hope this investment will send a message to our foreign neighbors that we all must invest in screening technology that will prevent terrorist attack attempts like that of the Christmas Day incident.
Job Creation and Job Training:
Not only must Congress and the Obama Administration explore all proposals to create new jobs, we must also help train our displaced workers for new careers. This is why the Obama Administration proposes setting aside $261 million for the U.S. Department of Labor and $60 million for the U.S. Department of Education to support competitive grants for innovative job training proposals currently being used by our regions. This is of critical importance to the more than 700,000 workers in Michigan who are currently without work. It is my hope that this funding will help bolster Michigan’s No Worker Left Behind so that we can get these workers into a training program as quickly as possible. Further, the Administration continues to support green job creation by proposing $85 million for green job training.
Manufacturing:
The President’s request for $130 million for the Manufacturing Extension Partnership (MEP) demonstrates the Administration’s clear commitment, even in times of economic duress, to promoting manufacturing in this country. Programs like MEP, which primarily support small and medium-sized businesses, are invaluable to the Nation’s recovery efforts.
Small Business:
The President’s proposal for small businesses is just the kind of innovate, pragmatic thinking we need so that Michigan’s small businesses can continue to compete in the 21st century economy and push our nation toward economic recovery. The President has proposed cutting taxes on small businesses to spur hiring and increase wages, eliminating capital gains taxes on long-term investments on many small businesses, refocusing money from the Troubled Asset Relief Program (TARP) to small businesses that need access to affordable credit, and supporting local financial institution lending in low-income communities to small businesses.
These new initiatives, coupled with expansions and improvements to the Small Business Administration’s (SBA) programs – for example, $28 billion in loan guarantees, an expansion of the 7(a) loan limit from $2 million to $5 million, $7.5 billion in guaranteed lending for commercial real estate development and heavy machinery purchases, and competitive technical assistance grants – are truly the kinds of investments we need to help our small businesses in Michigan and throughout the country continue to be engines of economic growth.”
The Spending Freeze:
As mentioned during his State of the Union address, President Obama has called for a three-year spending freeze on non-security discretionary spending – which will save Americans $250 billion over 10 years. Facing a budget deficit of $1.556 trillion in 2010, the Obama Administration has had to make some tough choices when it comes to federal spending. Like many families across America, the federal government also must be implementing a scaled-back budget. Rest assured this freeze will not unnecessarily hurt our families in need – our children’s education and job creation across the country will not be impacted. I intend to work closely with my colleagues to ensure that this freeze is implemented responsibly and effectively.
Trade:
I am pleased by President Obama’s request for a 20 percent increase in funding for the International Trade Administration (ITA). These funds will help ITA combat foreign barriers to trade and cultivate new markets for American goods and services, which is in keeping with the promise to promote exports the President made during his State of the Union speech last week.
Veterans and the Military:
As a veteran, I am pleased the President’s budget provides continued support to Michigan’s more than 761,000 veterans. The budget provides for advance appropriations of the Department of Veterans’ Affairs (VA) so that Congressional budget delays do not get in the way of providing our veterans the care and benefits they need. This budget accounts for the need for continuous care of many of our soldiers returning from Iraq and Afghanistan with cognitive impairments like Post Traumatic Stress Disorder and Traumatic Brain Injury by robustly supporting wounded warrior transition units and VA centers of excellence. In addition, for the first time, the budget provides for highly disabled veterans who are medically retired from service to be eligible for concurrent receipt of disability benefits from VA in addition to Department of Defense retirement benefits.
Further, the President has recognized the needs of active-duty and reserve servicemen and women and their families, many of whom have felt the strain of multiple tours in Iraq and Afghanistan. As we continue the fight abroad, the President has stepped up services here at home. For example, the President’s budget provides for a military pay raise to keep pay in line with the private sector, $1.1 billion to expand affordable, high-quality child care services for military families, $1.9 billion to help families meet the challenges brought on by repeated deployments and family separations through expanded counseling and assistance services, and $85 million for enhanced career and educational opportunities for military spouses through tuition assistance and federal internship programs.

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