Statement from AACF Executive Director Rich Huddleston on the U.S. House of Representative budget proposal for 2012:

Without exception, the House Republican’s 2012 spending plan places a greater value on millionaire tax breaks than the quality of life for low-income children, people with disabilities and seniors. Not only would today’s children endure cuts to health care services, but they’d face a future with no guaranteed ability to pay for health care after retirement.

Under House Budget Committee Chairman Paul Ryan’s plan, the Medicare system would be converted to vouchers-but people could only use those vouchers for insurance plans identified by the federal government. Insurance lobbyists in Washington would buy even more influence in Congress.

The proposal would also force each state to limit Medicaid benefits. The conversion of Medicaid into a block grant slashes benefits to seniors, people living with disabilities, low-income children, pregnant women and working parents-all at a time when our economic recovery is still unstable. Under the current system, the federal treasury helps states offset their Medicaid costs, adjusting with the ebb and flow of a market economy. The proposed system would give states a limited amount of money with no way to adjust to economic downturns. The number of people requiring these life-saving supports increases dramatically during times of distress.

In Arkansas, Medicaid is a core part of ARKids First, providing insurance to thousands of low-income children. Medicaid also provides essential prenatal care for women and home care for people with disabilities. Under this plan, the House of Representatives hopes to slash the money available for these programs.

The deep cuts in both Medicare and Medicaid would hit doctors, hospitals, and other medical providers. Under a block grant, Arkansas would be forced to deeply reduce Medicaid payments to hospitals, nursing homes, physicians, pharmacies and managed care plans. These cuts in provider rates would likely cause more plans and providers to stop participating in Medicaid, reducing patient access to critical care and placing more pressure on community health centers and safety-net hospitals.

The economic toll on the health care community in Arkansas could be catastrophic. Medicare and Medicaid spending on hospitals, clinics, and other health care providers ripple through our state’s economy. Studies show that a Medicaid dollar in Arkansas turns over up to six times. There is no greater force on the state’s economy than the health care sector. The high poverty rate in Arkansas means we’d see even greater negative effects under this plan than other states and the nation as a whole.

Not only would the plan cut Medicaid benefits, it would slash food stamps, low-income housing support, Pell Grants for college and other programs for people with limited incomes. It would lead to a substantial increase in poverty, hardship and inequality. It would also undercut the ability of low-income children to climb up the opportunity ladder and afford a college education to improve their economic security later in life.

The Ryan plan would generate at least two-thirds-or about $2.9 trillion-out of the $4.3 trillion in budget cuts over 10 years from programs for people with low or modest means while preserving-even expanding-tax cuts for high-income Americans.

House leaders are telling seniors, people with disabilities and children that health care is simply not an option for them, while at the same time giving millionaires an additional $125,000 tax break. Tax payers in the highest marginal tax rate already benefit from a 3 percent tax cut through the end of 2012. Mr. Ryan’s proposal turns that into a 14 percent tax cut compared to the normal rate.

The federal budget is far more than spreadsheet of numbers. It is a document showing what we value as Americans. This budget proposal signals a point-of-view that favors the wealthy over working families. It tells the world that America does not believe children, women, seniors, or people with disabilities deserve the economic security that comes with stable health care.

We urge all members of Congress-especially our representatives from Arkansas-to vote against this plan and propose a budget road map that represents all Arkansans.