In exchange for raising the debt ceiling limit, Republicans won several concessions, including immediate and long-term cuts to discretionary spending without any of the increases in revenues that Democrats wanted.
In short: The bill caps discretionary spending over 10 years, driving $900 billion in deficit reduction. For the first two years, the caps have to be applied equally between security and non-security spending. Non-security spending is defined as discretionary spending outside of defense, homeland security, veterans affairs, and international affairs. Senior Corps falls into this category (RSVP, FGP, SCP).
A Congressional Joint Select Committee on Deficit Reduction will be created to agree upon at least $1.2 trillion and up to $1.5 trillion in additional deficit reduction measures. This 12-member bipartisan committee must produce this legislation by Nov. 23; it will then be subject to an up-or-down vote without amendments. Everything is on the table for this committee's consideration: revenues, entitlements or further cuts to discretionary programs, such as RSVP, Foster Grandparents and Senior Companion Programs.
If the joint committee or Congress fails to act by the end of the calendar year, $1.2 trillion in automatic, across-the-board cuts would take effect through a sequestration process. Sequestration is the process of automatic cuts in spending if Congress fails to enact the specified $1.2 trillion in deficit reductions by the joint committee. Every agency, except those exempted by Congress, would have the same percentage of its appropriations withheld on an across-the-board basis. At least the debt ceiling agreement clears up the status of FY 2012 budget allocations and averted significant and numerous economic consequences had the government defaulted.
So the 2012 discretionary budget would be $7 billion below the FY 2011 aggregate level. Discretionary programs like Senior Corps could face painful cuts under the spending caps - the best case scenario for FY 2012 and FY 2013 national service funding would be only minor cuts, but all programs are at risk of being significantly reduced, as appropriators struggle to keep total spending under the cap. With the caps in place for 10 years, there is no immediate relief in sight from reduced or frozen funding levels that do not take into account human need or other factors that increase demand for programs and services. Discretionary programs are not protected from the second round of drastic cuts, as the joint committee can opt to further reduce either side of the ledger.
The joint committee merely continues the partisan battle over whether revenues should be considered in deficit reduction. If committee members cannot agree on a package, the potential for using revenues to help reduce the deficit is effectively dead, as the sequestration process does not contain that option. If revenues are not included in the second round of deficit reduction, the cuts to entitlements will need to be that much deeper. To reach $1.2 trillion in cuts alone, the joint committee would have to make significant cuts to Medicaid, Medicare and possibly Social Security. While details such as final FY 2012 spending levels or what that second round of $1.2-1.5 trillion of deficit reduction would look like will not be known for months, it is apparent the size and scope of this deal is a game changer.
But we do know this: the deal will reduce the amount of federal funding available for community-level aging programs at a time when our economy is still struggling and our nation's population is rapidly aging.
For the older adults and caregivers this will mean more people will face waiting lists for critical services, such as home care, home-delivered meals and medical transportation, as well as less help with heating/cooling bills from LIHEAP, reduced availability of affordable senior housing, and similar strains to other federally funded community-level programs. If Medicaid cuts go as deep as is feared, nursing home-provided long-term care could no longer be considered an entitlement.
Until there is agreement on the budget reductions, the Nevada Senior Corps Association (NSCA) will not know the actual impact to Senior Corps funding levels. NSCA will continue to monitor these developments and keep you updated. Your continued advocacy is critical. Talk to candidates running for Congress and ask them where they stand on Paul Ryan's budget plan, which cuts benefits to seniors. Let your congressional representatives know of your concerns. Stay tuned.
• Janice Ayres is the president of Nevada Senior Corps Association.