VOINOVICH VOTES IN FAVOR OF FISCAL DISCIPLINE
Reduces Federal Spending by Almost $40 Billion
U.S. Senator George V. Voinovich (R-OH) voted in favor of the Deficit Reduction Omnibus Reconciliation Act of 2005 conference report today, helping to put the federal government's fiscal house in order. The conference report reduces mandatory spending by $39.732 billion over a five-year period. It passed the Senate by a vote of 51 to 50. This is the first time since 1997 that Congress has used the reconciliation process to reduce mandatory spending.
"As a former mayor and governor, I understand the importance of making difficult decisions when necessary. Congress must remember that all the choices it makes right now are being measured against a backdrop of ever-increasing deficits, Medicare costs, disaster relief funding and the cost of the war against terrorism. We cannot continue to spend uncontrollably and reduce revenue under the assumption that our children and grandchildren will pay for it tomorrow," said Senator Voinovich.
The deficit for 2005 was $317 billionthe third largest deficit in our nation's history. The first and second largest deficits occurred in 2004 and 2003. On October 20th, the gross federal debt climbed past $8 trillion. According to the Congressional Budget Office (CBO), in 2005 interest on the public debt grew more rapidly than any other major spending category, rising 14 percent above the 2004 level.
The money saved through passage of this conference report will:
· Begin a longer-term effort at slowing the growth of entitlement spending, which now consumes about 54 percent of the total budget, and will rise to 62 percent in 10 years if no action is taken; and
· Stimulate reform of entitlement programs, many of which are outdated, inefficient, and excessively costly.
Although difficult decisions on funding cuts were made, the bill still provides additional funding to many vital programs through offsets. The 2006 budget reconciliation conference report:
Education: · Establishes a new grant program for low-income, high achieving students who study math, science, technology, engineering or certain foreign languages. These students will have access to over $8,000 a year toward achieving their education goals;
· Beginning in 2007, it increases student loan limits from $2,625 to $3,500 for first-year students, and from $3,500 to $4,500 for second-year students. It also increases the yearly graduate school limit from $10,000 to $12,000.
· Provides $4 billion to reduce student loan taxes and fees, eliminating insurance premiums charged to students and phasing out student origination fees over the next five years;
· Provides loan forgiveness for teachers of math, science, and special education up to $17,500; and
· Provides deferment on payment of federal loans for individuals serving on active duty or performing qualified National Guard duty during war, other military operations or a terrorist-related national emergency.
Medicare · Continues to give Medicare beneficiaries the option to purchase power wheelchairs in their first month of use;
· Provides a one-year freeze for Medicare payments to physicians, continuing to encourage more doctors to see Medicare patients and preserving access to health care for seniors and individuals with disabilities (versus the scheduled 4.5 percent decrease);
· Provides for Medicare coverage of oxygen supply equipment and maintenance for up to 36 months of rental (versus the proposed 18 months of coverage); and
Medicaid · Provides funding for states that have shortfalls in their State Children's Health Insurance Program (SCHIP) and expands their ability to reach children and enroll them in the safety-net program;
· Expands Medicaid benefits for severely disabled children by giving states the ability to offer Medicaid coverage to families of disabled children from higher incomes;
· Allows certain children's hospitals to purchase prescription drugs at discounted prices through the 340B Program. Currently, community health centers and some disproportionate-share hospitals can purchase Medicaid drugs at discounted prices if they sell the drugs in their own internal pharmacy;
Low Income Home Energy Assistance Program (LIHEAP) · Authorizes an additional $1 billion for the LIHEAP program in 2007. This is in addition to funding provided through the regular appropriations process.
Deposit Insurance · Raises limits on deposit insurance for retirement accounts to $250,000 and merges the Bank Insurance Fund with the Savings Association Insurance Fund.
http://voinovich.senate.gov/news_center/record.cfm?id=250049&