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"As governor of a Midwestern state
that values and depends on its farmers, I am writing to warn you
that the federal budget you recently proposed would have a
devastating impact on rural communities in Illinois and across
America's heartland," the governor wrote. "These agriculture-based
communities rely heavily on federal funds to maintain jobs, health
care and public services. We in Illinois are working hard to promote
and expand our agricultural industry, bring new jobs to downstate
communities and grow local economies, but for us to achieve maximum
success, the federal government must uphold its commitment to rural
communities as well. I urge you to reconsider the proposed cuts and
to fund those programs that will spur economic growth and improve
the quality of life in rural Illinois." Gov. Blagojevich expressed
concerns over five areas slated for steep budget cuts: farm
subsidies, rural health care, the Community Development Block Grant,
Amtrak and Essential Air Services.
"Like much of the Midwest, rural Illinois is made up of farmers,
many of whom rely on federal payment programs to support their
business when market prices are low," the governor wrote. "For many
farmers, federal dollars have meant the difference between
foreclosure and staying afloat. Under your proposed budget, however,
rural farmers will be stretched to a breaking point."
Under the president's proposed budget,
128,000 Illinois farmers will face:
- A 5 percent reduction in commodity payments.
- A significant reduction in the payment cap, from $360,000 to
$250,000 a year.
- Elimination of the "three entity rule," which could decrease
annual subsidies from $720,000 to $250,000 a year.
Gov. Blagojevich also opposed the president's plan to slash 40
percent of Housing and Urban Development's Community Development
Block Grant program, which funds vital water and sewer system
upgrades as well as structural improvements that attract new
businesses and create more jobs.
The governor also blasted the president's proposed cuts to rural
health care programs, which keep rural hospitals competitive and
fund continuing education programs for doctors and nurses. Under the
proposed budget, Illinois stands to lose $1,140,000 in rural
hospital grants.
"It would be shameful to turn our backs on our own citizens as we
spend billions to develop infrastructure in other nations," Gov.
Blagojevich wrote.
The proposed budget also slashes funding for rural transportation
services, such as Amtrak and the Essential Air Service program.
"Your proposed budget cuts would reduce EAS funding to $50
million in 2006, less than half of what it was last year," the
governor wrote. "This will virtually eliminate air service to rural
Illinois communities such as Decatur, Quincy and Marion,
dramatically slowing economic growth in those regions. The proposed
budget cuts would also eliminate Amtrak service as we know it,
leaving rural Illinoisans with few viable public transportation
options."
= = =
Text of governor's letter:
Office
of the Governor
Chicago, Illinois 60601
Rod Blagojevich
Governor
February 10, 2005
The Honorable George W. Bush
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
Dear Mr. President,
As Governor of a Midwestern state that
values and depends on its farmers, I am writing to warn you that the
federal budget you recently proposed would have a devastating impact
on rural communities in Illinois and across America's Heartland.
These agriculture-based communities rely heavily on federal funds to
maintain jobs, healthcare, and public services. We in Illinois are
working hard to promote and expand our agricultural industry, bring
new jobs to Downstate communities and grow local economies, but for
us to achieve maximum success, the federal government must uphold
its commitment to rural communities as well. I urge you to
reconsider the proposed cuts, and to fund those programs that will
spur economic growth and improve the quality of life in rural
Illinois.
[to top of second column in
this article] |
Like much of the Midwest, rural
Illinois is made up of farmers, many of whom rely on federal payment
programs to support their businesses when market prices are low. For
many farmers, federal dollars mean the difference between
foreclosure and staying afloat.
Under your proposed budget, however,
rural farmers will be stretched to a breaking point. Proposed budget
cuts include a five percent reduction in commodity payments and a
significant reduction in the payment cap, from $360,000 a year to
$250,000 a year. The proposed budget also eliminates the "three
entity rule" under which families can divide their farm among family
members to maximize payments -- in real terms, this could mean a
decrease in annual subsidies from $720,000 to $250,000 per family
farm. This dramatic decrease would force roughly 128,000 Illinois
farmers and their families to make difficult choices to avoid losing
their livelihood. It would also affect thousands of other rural
workers whose jobs support the farmers, such as food processors and
equipment sellers.
Slashing HUD's Community Development
Block Grant Program by an astonishing 40 percent would also hurt
economic development in rural Illinois. This much-needed program
funds vital water and sewer system upgrades as well as structural
improvements that attract new businesses and create more jobs. In
2004, these improvements helped nearly 70,000 rural Illinoisans. It
would be shameful to turn our backs on our own citizens as we spend
billions to develop the infrastructures in other nations.
The proposed budget cuts will also
affect rural healthcare: cuts to the Medicare Rural Hospital
Flexibility program and the Small Hospital Improvement program would
mean a net loss of $1,140,000 for small rural hospitals in Illinois.
Without the Medical Rural Hospital Flexibility funding, nearly half
of all downstate hospitals could not afford the consultation
services and special project grants that allow them to remain
competitive. Furthermore, the loss of funding from the Small
Hospital Improvement program would leave 45 to 50 downstate
hospitals without enough money to support continuing education
programs for doctors and nurses.
Just as your budget removes resources
within our rural communities, it also strips citizens of the ability
to travel outside their communities. The proposed budget cuts to
local transportation services such as Amtrak and the Essential Air
Service program (EAS) would deal a harsh blow to rural families.
Amtrak provides vital and affordable transportation service for many
of our families, seniors on fixed incomes, members of the armed
forces, and students. In many downstate communities, passenger rail
is the only public transportation available. The Essential Air
Service (EAS) is critical for rural businesses, providing air travel
service to downstate communities that are isolated from the national
air transportation system.
Your proposed budget cuts would reduce
EAS funding to $50 million in 2006, less than half of what it was
last year. This will virtually eliminate air service to rural
Illinois communities such as Decatur, Quincy, and Marion,
dramatically slowing economic growth in those regions. The proposed
reductions would also eliminate Amtrak service as we know it,
leaving rural Illinoisans with few viable public transportation
options.
I urge you to reconsider your budget
as proposed, and work with the Congress to find budget solutions
that will spur economic growth and maintain essential public
services in rural regions. Should you wish to discuss these
concerns, my staff and I are always available.
Sincerely,
Rod Blagojevich
Governor, Illinois
[News release from the
governor's office]
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