NC Budget and Tax Center

Trump’s skinny budget would cut North Carolina’s medical research projects

As pointed out last week, President Trump’s proposed skinny budget shows a lack of vision as it makes no attempt to prioritize the allocation of money against various important American needs and priorities in a strategic manner. Since the skinny budget was released, there has been more analysis across the county as to how the proposed budget would impact each state. Today, we focus on analysis regarding the impact to health research in our state.

Recently, the Center for American Progress started a special series to assess State-by-State Cuts to NIH Funding in the Trump Budget. According to the analysis, if Trump’s proposed budget takes effect, there would be an 18.3 percent cut to North Carolina’s National Institutes of Health Funding.

The researchers point out that North Carolina was the 6th most highly funded stated in 2016. Last year, NIH made 2,221 grants to organizations in North Carolina, totaling $1.2 billion.
Regarding specific projects that could be threatened, they state:

“The Trump administration’s budget outline would cut NIH funding by $5.8 billion, an 18.3 percent drop. This proposal would have pared North Carolina’s NIH grant allotment to just $980 million if it had been applied this year.

This funding cut also threatens medical research projects in North Carolina scheduled to receive NIH support in future years. For example, Trump’s deep budget cuts could threaten projects including:

• Research being conducted at Duke University on combatting childhood obesity
• Duke University research into improving radiation therapy for cancer patients
• Efforts at the University of North Carolina at Chapel Hill, or UNC, to determine how to diagnose Alzheimer’s Disease at early ages to improve treatment
• UNC research on new treatments for the eradication of HIV

NC Budget and Tax Center, Trump Administration

Trump’s budget will not make America great again

Budgets matter, both within government and inside each household across America. Within government, a budget in its most basic form equals policy priority. Yesterday, the White House released its first budget blueprint, also referred to as its skinny budget, and the consensus all around is that the proposed budget will not make America great again.

Instead, Trump’s proposed budget will hurt households and remove the foundational role of many federal programs that support the economy and neighborhood well-being.

The reason Trump’s budget will not make America great again is simple: Trump’s budget makes no attempt to prioritize the allocation of money against various important American needs and priorities in a strategic manner. Instead, the Trump budget blueprint makes it very clear that in order to make America great again it only has to address one policy goal: safety. The budget proposes a $54 billion increase in spending on defense.

The safety and security of America is vital. However, the recipe of what has truly made America great over time has been its ability to prioritize effectively various policies, including security, in order to serve all Americans and provide for a more prosperous future that considers a wide array of current and emerging issues. Eroding support to state and local governments, reducing investments in neighborhood well-being and limiting the economic security of Americans will undercut that goal. Read more

NC Budget and Tax Center

New report: Trump budget will put federal grants to NC and its local governments at risk

The Center on Budget & Policy Priorities (CBPP) has released a timely report titled “At Risk: Federal Grants to State and Local Governments”. The two major conclusions of the report are blunt: Federal grants matter to state and local budgets (accounting for approximately 30 percent of North Carolina’s state budget), and programs for low and moderate income families could bear the brunt of cuts based on proposals from President Trump and congressional Republicans.

This report comes out a few days before the White House is expected to release an outline of its 2018 fiscal year “skinny budget” on Thursday, March 16.

Here are three key points (and charts) from CBPP’s latest report that highlights some basic facts on federal grants and that North Carolinians should know:

  • Grants are at risk, and states cannot absorb the magnitude of the
    potential cuts without reducing services:
    The President’s forthcoming budget is reported to cut non-defense discretionary spending — the source of state and local discretionary grants — by $54 billion.” “In all likelihood, states and localities will be forced to scale back or eliminate services and programs for families, seniors, and people with disabilities, rather than raise their own funds to continue the programs at their current level.”
  • Grants are already at historically low levels: Discretionary (annually appropriated) grants to state and local governments in federal fiscal year 2015 were 1.05 percent of GDP, lower than in all but one year since 1980.”

  • Federal grants are vital to help finance critical programs and services on which low and moderate-income families and communities of every state rely on. Among the programs these discretionary grants support are:
    • Highways, airports, and mass transit
    • High poverty schools
    • Head Start
    • Community health centers
    • Training and employment services
    • Child protective services
    • Low-income home energy assistance
    • Child care
NC Budget and Tax Center

Ineffective health policy + Loss of federal money = Millions of North Carolinians worse off over time

This week, House Republicans in Congress produced a bill that would repeal and replace the Affordable Care Act, which has been in place since 2010. The proposed bill is called the American Health Care Act.

An analysis of this proposed bill to drastically restructure health care in the United States can be summarized using the following formula: Ineffective health policy + Loss of federal money = Millions of NC citizens worse off over time

The variables of this formula and their negative result are explained below.

Ineffective Health Policy

The United States is already trying to catch up to other countries in terms of health outcomes.- When it comes to three core principles: 1) access to health care, 2) affordable health care, and 3) quality health care, the proposed bill is not clear as to how each of those three needs will be met and instead appears to be focused solely on restructuring health care in order to reduce the federal debt. Read more

NC Budget and Tax Center

Worth Tracking: Doctors, hospitals, and health industry groups are opposing the proposed Health Care Act

Earlier this week House Republicans in Congress produced a bill called the American Health Care Act to repeal and replace the Affordable Care Act. It is important for all Americans, regardless of political party, to know that many professional medical groups and industry stakeholders have expressed publicly that they have serious concerns about the newly proposed bill.

A current list of major groups opposed the new health care plan includes:

Interest groups and industry stakeholders:
  • The AARP
  • American Hospital Association
  • Federation of American Hospitals
  • America’s Essential Hospitals
  • Families USA
Doctors’ and nurses’ groups
  • The American Medical Association
  • American Nurses Association
  • American College of Physicians
  • National Nurses United
  • National Physicians Alliance
  • Association of American Physicians and Surgeons
  • American Academy of Pediatrics