Well, you know the big good thing, of course. We didn’t have another government shutdown. And we’ve got a budget that will defer further Republican efforts to gut domestic spending until work on next year’s budget begins. Only a brief respite, however, from efforts to block the President’s recently-announced immigration enforcement policies.
You know some of the big bad things too, I suppose. Banks will again be allowed to invest federally-insured deposits — your savings and mine — in some risky derivatives, e.g., bets on the creditworthiness of borrowers.
And very wealthy people will be allowed to donate a whole lot more to the national political parties — a far less risky investment in election results and policy decisions that serve their interest.
For us who live in the District of Columbia, the override of our vote to legalize small-scale marijuana possession and production is a big bad thing too — if not in itself, then because it’s a grating reminder that Congress can meddle in our local affairs whenever it chooses.
Other good and bad things happened this month that didn’t get as much media attention. Here are four that follow through on issues I’ve been blogging about.
Funding for the National Housing Trust Fund
The National Housing Trust Fund will, at long last, have some money for grants to support the development and preservation of affordable housing — mostly rental housing for the very lowest-income households.
Brief review of the history for those who’ve lost track.
When Congress created the Fund, in 2008, it designated a certain percent of Fannie Mae and Freddie Mac’s new business as the main revenue stream. Well, you know what happened to them when the housing market tanked at about the same time.
Despite the recovery, the Federal Housing Finance Agency, which took over their affairs, preserved its freeze on their contributions to the Fund.
We’ve had a series of legislative proposals to create another revenue stream. Nothing’s come of any of them — or of the one-time financing the President has included in his proposed budgets.
Earlier this month, FHFA told Fannie and Freddie to begin transferring money to the Fund, as the law that created it envisioned. Hardly the be-all and end-all for the acute shortage of housing that affordable for extremely low-income people, but every bit helps.
A Boost for High-Quality, Affordable Child Care
The budget package Congress just passed includes an additional $75 million for the recently updated and improved Child Care and Development Block Grant. The increase will surely help, though, as CLASP says, far more will be needed.
States will have to spend more to carry out their mandated responsibilities, as my overview of the new block grant law noted. They’ll need even more funds to reverse the downward trend in the number of children with CCDBG-subsidized child care — fewer in 2012 than in any year since 1998.
But again, every bit helps. And it’s encouraging to see continuing bipartisan support for high-quality child care that’s affordable for low-income families, as it surely isn’t without a subsidy.
Another Funding Cut for the IRS
The just-passed budget package cut funding for the Internal Revenue Services by $346 million, leaving the agency with less, in real dollars, than in any year since 2000, when it had fewer tax returns to process and fewer responsibilities as well.
This is a good thing if you’re anxious about having your tax returns audited. Not a good thing if you want an IRS representative to answer questions so you can file an accurate return.
And a very bad thing indeed if you’re worried about insufficient funding for non-defense programs, including those intended to provide both opportunities and a safety net for low-income individuals and families.
Or, for that matter, if you’re worried about the deficit. And we who care about these programs should be, since it’s been used to justify harmful spending cuts, including, but not limited to those Congress has already passed.
Because less money for the IRS means less money to offset spending. The Treasury Department estimates that every $1 spent on enforcement yields a $6 return in revenues collected. Citizens for Tax Justice cites considerably higher ROI figures.
The latest funding cut seems likely to further reduce the number of audits the IRS conducts — especially the potentially high-yielding, complex audits of high-income individuals and big businesses.
Thus, says sharp-witted economist/blogger Jared Bernstein, the budget cut is “a way to cut taxes without explicit tax cuts.” And tax cuts without offsetting revenue-raisers mean a shrinking pot of money for the already-squeezed non-defense share of the budget.
Another Victory for the White Potato
Buried deep in the budget package, we find a provision that requires the U.S. Department of Agriculture to add white potatoes to the list of foods that states must and can include in their own WIC packages, i.e., what low-income mothers of young children can buy with their WIC coupons or the equivalent.
The coupons are supposed to supplement the family’s diet with nutrients it might otherwise not get enough of. So the list includes foods like whole-grain bread, low-fat dairy products and fruits and vegetables. These reflect recommendations by experts at the Institute of Medicine.
The IOM panel did not recommend white potatoes because, in its view, mothers and their young children already ate quite enough of them. The potato industry loudly protested. And Congress members from potato-growing states swiftly launched a series of maneuvers to insert white potatoes into the WIC list.
Now they’ve succeeded — a first-time-ever successful effort to override the scientific judgment the WIC list reflects. Not, however, the first time Congressional potato champions have successfully interfered with dietary guidelines for federally-subsidized meals.
Further proof, were any needed, that bipartisan isn’t always better.
NOTE: I’m painfully conscious that I’ve left out some noteworthy good things — and some bad as well. What would you add?