Governor Schweiker Proposes Cuts in Food Programs

"It's official, friends; we're in a recession."

So said Governor Mark Schweiker in announcing a budget proposal that he characterized as "not frugal, but thrifty." And while he called for only a little growth in spending from the General Fund (about 1 percent) and for only a "modest" cut in taxes for Pennsylvania businesses and families (about $100 million), his plan also includes a cut in Pennsylvania's food programs. At a time that food insecurity is growing, is that thrifty, frugal, or something else altogether?

The State Food Purchase Program (SFPP) would be cut by $500,000 under the Governor's plan, a 3 percent drop from the current funding of $16,950,000. The Farmers' Market Nutrition Program (FMNP) also would be cut by $500,000 from the current mark of $1,985,000.

The Supplemental Nutrition Program for Women, Infants and Children (WIC), which already has closed satellite offices, reduced staff and reduced client services due to lack of funds, would receive no state funding under the Governor's plan.

Recession-Driven Need

The Commonwealth is expected to end the current year with a big deficit, one that Governor Schweiker plans to close with $550 million from the Rainy Day Fund. During such times, spending cuts are to be expected. Yet for programs that meet basic human needs, a recession is the very time when additional resources are required. It's a bad time to cut food programs!

This is vividly demonstrated by current reports from charitable food providers. An October survey by Hunger Action of 150 food pantries found a 13 percent increase over the same month in 2000. Early 2002 reports from food banks indicate even larger increases (see related article).

Joyce Rothermel, executive director of the Greater Pittsburgh Community Food Bank, stated: "Since summer our area has increased job losses impacting many of the low-income people we serve. And both locally and nationally donated food has been down."

Tax Forgiveness, Adult Health Insurance and TANF

The best news in the Governor's proposal for low-wage families is the increase of the personal income tax deduction from $8,500 to $9,000. This will enable a family of four with two claimants and two dependents to earn up to $31,000 annually with no PA income tax liability. The annual cost of this expansion is expected to be $12 million.

The launch of the Adult Basic Insurance Program, providing health care coverage for adults between 19 and 65 years of age whose household income is less than 200 percent of poverty, is also good news. However, this was clouded by the Governor's proposal to delay the start of that Program and transfer the savings to the General Fund to help balance next year's budget.

Over $880 million in planned TANF spending provides another opportunity to help families who are struggling just above the poverty line. About two-thirds of this would be spent by the Department of Public Welfare on cash assistance grants, employment and training programs, and child care for TANF parents who are employed.

Included is funding for around 7,000 families who will reach their 5-year limit this spring and who hope to qualify for "extended TANF" (see related article).

According to the Governor's plan, over $100 million of the block grant would be made available to executive agencies other than Public Welfare. Among the surprises in this portion of the budget are an additional $2.7 million for the Office of Inspector General to investigate people who apply for food stamps (see related article on page 3), $2 million for the "Weed and Seed" crime prevention program, and $4 million to the Department of Health to buy the Rob Reiner video "I Am Your Child" for parents.

On the other hand, the call from WIC administrators and advocates for $3 million to restore WIC service levels was unheeded.

Early Care and Education Taskforce

Building on the Early Childhood Initiative begun last year, Governor Schweiker called for the formation of a taskforce that would conduct a study to develop a foundation for an early care and educational delivery system to improve school readiness. He said the task force would consist of business leaders, childcare advocates and providers, early education teachers, and academics.

Although the Governor stated that one of the foci of the Early Childhood Initiative is "connecting children with nutrition programs", it is not clear how the link between good nutrition and cognitive development will be reflected in the work of the new taskforce.

A Long Budget Debate

The $91 million tax cut for business, the $550 million dip into the Rainy Day Fund, the delay in implementation of the Adult Basic Coverage Insurance Program, and the relatively flat funding for school districts (except Philadelphia) suggest this will be a long and tough budget process. Readers are encouraged to contact their legislators and urge them to finalize a budget that will support Pennsylvanians who are struggling the most in these difficult economic times.

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