President Obama unveiled his spending and revenue plan for the fiscal year starting on October 1, 2012. The President’s Budget offers a replacement for the automatic spending cuts required by the Budget Control Act enacted last summer. It proposes to reduce the debt by about $4 trillion over 10 years, through tax increases and other savings previously proposed by the Administration. The President also recommends other targeted spending increases, including hundreds of billions of dollars for infrastructure projects and job creation. If adopted in full, the President’s budget would make the automatic cuts (known as a sequester) slated to take effect in January of 2013 unnecessary, according to an Administration official. The automatic cuts would cause disability-related and other non-defense discretionary programs to be cut by about 9% in 2013.
The President is proposing $51 billion in Medicaid cuts over the next ten years. The cuts appear similar to previously proposed Medicaid reductions including reducing the Medicaid provider tax threshold, proposing a single blended matching rate for Medicaid and the Children’s Health Insurance program, reducing reimbursement rates for durable medical equipment and changes to the funding for hospitals that serve a large number of low income individuals. The HHS budget statement reiterated the Administration’s opposition to block granting and slashing the funding for Medicaid.
The Arc is reviewing the President’s Budget for funding requests for specific disability-related programs which we will make available shortly.