(photo: Ed Reed/Mayor's Office)
Last month, President Trump offered a cynical vision of the future with the release of his fiscal year 2020 budget. If enacted, it would deepen poverty and widen economic and racial disparities by denying millions health care and food, ramping up anti-immigrant enforcement, sabotaging the census, and disinvesting in housing and education. Meanwhile, the proposal prioritizes guns over butter by bloating the military budget and increases tax cuts to high-income taxpayers and heirs to very large estates.
FPWA analyzed the president’s budget by showing both the present danger to New York City and putting the proposal in context with historical funding trends, as illustrated in FPWA’s recently-launched Federal Funds Tracker.
According to our analysis, the proposal would collectively cut federal revenue to a handful of key human service agencies by nearly a half billion dollars (16 percent of their federal revenue) by ending or devastating programs that support the needs of communities, children and older adults, and those who are unable to afford a basic standard of living.
Although the president’s budget is non-binding, it is still of great concern because it is a statement of priorities from the country’s top officeholder, and unless an agreement is made before the coming fiscal year (which begins October 1), Trump’s deep cuts could become reality.
Moreover, a pattern has emerged in which the Trump administration turns to administrative action when its proposals fail to get through Congress, such as the proposed rule that would slash the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) by making it even harder for unemployed and underemployed workers to access food assistance, including 50,000 New York City residents.
We evaluate the impact of the proposal on the nearly 40 federal grants that support the four New York City agencies featured in the FPWA Federal Funds Tracker – the Administration for Children’s Services (ACS), Department of Youth and Community Development (DYCD), Department for the Aging (DFTA), and Department of Social Services (DSS) – and in turn, the nonprofit human service providers who rely on these grants.
These four agencies’ federal grants represented 38 percent ($2.9 billion) of the City’s total federal grants in FY 2018.
FPWA analysis of FFIS and NYC CAFR and OMB data, and Congressional Budget Justifications
Trump’s FY 2020 vision extends the economic pain that has endured throughout this decade into the next. Our analysis reveals that, adjusting for inflation, all federal grants to the City fell by nearly $2 billion since FY 2010, including hundreds of millions in support for human services.
In large part, disinvestment over the last decade is due to the 2011 Budget Control Act (BCA), which set caps on defense and nondefense discretionary funding through 2021 and further reduced funding over time through across-the-board spending cuts known as sequestration.
This disinvestment has real life consequences. Federal grants are often passed through from City agencies to nonprofit human-service providers to support the needs of their communities and attract and retain qualified staff.
For example, the Chinese-American Planning Council, Inc. relies on federal support to serve more than 60,000 individuals and families across Manhattan, Brooklyn, and Queens. CPC’s federal support would be cut by 44 percent ($2.5 million) under Trump’s budget, driven in part by the proposal to eliminate the Community Services Block Grants.
CSBG – which has already fell by 14 percent since FY 2010 – supports a wide range of community-based activities to reduce poverty, such as CPC’s LEAD program at the High School for Dual Language and Asian Studies. The LEAD program helped a struggling high school student assimilate into a new school, improve her language skills, and ultimately go on to be a successful student.
When the federal government abdicates its responsibility, New York City’s commitment to caring for people who are struggling to afford basic needs means that it is often left to fill the gaps. Indeed, since FY 2010, the City has invested an additional $2.2 billion (nominally) to support these agencies. In other words, the money that New York City spends on human services in the absence of sufficient federal support could be spent on other investments equally important to the City’s quality of life, such as transportation, safety, education, cultural institutions, and the environment.
Americans have already endured nearly a decade of federal austerity. Congress – which has begun work on FY 2020 spending bills – should chart a new vision for the new decade by reaching an agreement that not only reverses course on the planned sequestration cuts but also meaningfully increases support for the woefully underfunded programs that serve low-to middle-income families, and that, when properly funded, strengthen the economy and improve the quality of life for all New Yorkers.
Derek Thomas is Senior Fiscal Policy Analyst and Gaurav Gupta-Casale is Fiscal Policy Associate at FPWA. On Twitter @FPWA.