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Debt Ceiling Talks Hit New Low

It has been an amazing week in Washington for political junkies. Unfortunately that’s about the only group of Americans finding a silver lining in the debt limit negotiations. After five meetings in five days, lawmakers still appear to be no closer to putting together a plan that reduces the deficit while allowing the federal government to increase its borrowing limit in the short-term. President Barack Obama and Treasury Secretary Tim Geithner continue to warn Congress that failing to increase the debt limit means the United States would default on its financial obligations for the first time in history. That could bring about cataclysmic economic consequences. Two major ratings agencies have already warned that they may downgrade America’s credit rating if Congress fails to find a permanent solution.

What can Arkansas Advocates for Children and Families and our allies do about it?

Conservative members of Congress refuse to increase the nation’s borrowing limit without enormous cuts in programs and services that provide economic security to thousands of Arkansans. The largest threat appears to be against Medicaid and as a result, ARKids First. These Congressional members refuse to consider a balanced approach to deficit reduction. They appear to value preserving tax loopholes for corporations and the wealthiest Americans more than services for children, seniors, and the disabled.  Sadly Rep. Rick Crawford, Rep. Tim Griffin, and Rep. Steve Womack all refuse to consider a balanced approach to deficit reduction. Sen. John Boozman also has indicated that he refuses to consider increased revenues as part of a deal to reduce the deficit, favoring instead tax cuts for billionaires and millionaires.

Rep. Mike Ross and Sen. Mark Pryor appear to be a bit more open to new revenues as part of a reasonable solution. Neither Mr. Ross nor Mr. Pryor has committed to a specific plan, but both have routinely indicated that they do not support balancing the budget on the backs of the working poor in Arkansas.

Here in Arkansas, drastic cuts in programs like Medicaid would cause enormous damage. Nearly 27 percent of Arkansas children lived in poverty in 2009. We can’t afford to abandon efforts to help these children become productive citizens by reducing their access to health care and other vital services. Additionally the economic impact would be immediate, both nationally and locally. We know that every Medicaid dollar spent in Arkansas creates a $6 return on investment. Reducing Medicaid services would not only have enormous negative effects on the health of Arkansans, it would send shockwaves throughout our economy.

We will continue to track the latest developments in Washington over the weekend and into next week.  In the meantime we need you to contact your senators and representative to urge that they agree to a balanced approach to deficit reduction. Our state cannot afford to lose valuable economic activity or health care options because of political games.