[Congressional Record Volume 141, Number 165 (Tuesday, October 24, 1995)]
[House]
[Page H10698]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




[[Page H 10698]]


           IMPACT OF REPUBLICAN BUDGET CUTS ON RURAL AMERICA

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Georgia [Mr. Bishop] is recognized for 5 minutes.
  Mr. BISHOP. Mr. Speaker, we are here today to focus on rural 
communities and the impact of the proposed Republican budget cuts on 
rural America. Current common wisdom is that two elements are essential 
for sustainable rural development: first, long-range strategic 
planning, and second, local leadership. We must support the efforts of 
State and Federal officials, and more importantly, the motivation and 
leadership shown by local community leaders who have been successful in 
making educational advances, and rural economic development a reality 
in their own communities. But we must look forward to more.
  We have all heard the statistics describing the decline of 
agriculture as the main rural economic base. And we know that rural 
areas differ greatly by region in terms of publication, income levels, 
and the relative importance of agriculture to the local economy. We 
also know that the shift in the national economy toward world markets 
requires rural areas--which are hampered by geographic isolation, 
inadequate infrastructure, and a shortage of capital--to compete in an 
unfamiliar global arena. But I believe that the citizens of Georgia, 
and particularly in the second district, have some of the most 
enterprising, efficient, and effective rural communities in the Nation.
  But the budget cuts proposed by the Republican Leadership work 
against the common wisdom of how we can best support the vitality of 
our rural communities and citizens. First of all, let me speak about 
the Republican budget proposal which cuts over $13 billion from our 
farm commodity programs. These cuts will come out of the pockets of 
farmers who live in my district. According to a recent letter sent to 
the Speaker from 15 members of the Speaker's own party, the current 
Freedom to Farm proposal will cause the U.S. taxpayer to actually spend 
even more on subsidies under the Freedom to Farm proposal than under 
the proposal put forth by the Democrats, or even the farm proposal put 
forward by the Republicans in the other body.
  Other cuts proposed by the Republicans will put a dagger in rural 
America. From health care to agriculture to education, the Republican 
budget targets rural America, where we can least afford to lessen our 
efforts. The Republican budget raises taxes on over 229 thousand 
working families in rural Georgia by an average of $368 by the 2002. In 
addition, the Republican cuts to the earned income tax credit will add 
an $84.5 million tax increase on working families and their children in 
rural Georgia.
  Republican education cuts will deny 113,000 children basic and 
advanced skills instruction in rural America in 1996 alone. Title 1 
funds for reading instruction in rural areas will be cut by $113 
million, denying crucial assistance at a time when many small-town and 
rural school systems are already having trouble making ends meet.
  The Republican budget will cut rural housing funding in our 
small communities. Cuts to public housing capital assistance in rural 
areas will total $460 million next year, which will severely hinder 
efforts by rural housing agencies to provide security and anticrime 
programs. The Republicans will also cut $108 million in funding for 
assistance to the homeless in rural America. This will mean 4.9 million 
fewer nights of shelter for America's rural homeless.

  Republicans propose to cut Medicare by $270 billion in this body--
three times larger than the largest cuts in history--just to pay for a 
tax cut for the wealthy. Their budget will cut Medicare spending in 
rural communities by $58 billion over 7 years, a 20-percent cut in the 
year 2002. The Republican cuts will force 9.6 million older and 
disabled Americans in rural America to pay higher premiums and higher 
deductibles. In Georgia, it will cut $2.7 billion for our rural areas 
from Medicare.
  The Republican Medicaid cuts will eliminate coverage for children, 
nursing home residents, and people who need long-term care throughout 
rural America. Two million, two hundred thousand rural Americans--
including over 1 million children--will be denied medicaid coverage. 
The budget will cut Medicaid in rural areas by as much as $45 billion, 
forcing poor children, people with disabilities, and older Americans to 
lose coverage.
  We should be focusing on four key principles that will help our rural 
communities:
  First: Providing economic opportunity that will create jobs within 
the community and region, and training for jobs that offer upward 
mobility;
  Second: Offering assistance for sustainable community development to 
further the creation of vibrant community institutions;
  Third: Encouraging community-based partnerships that involve all 
segments of the community, including our centers of learning and 
community institutions; and
  Fourth: Helping to provide a strategic vision for change that builds 
on the assets of the community--coordinating a response to community 
needs in a comprehensive fashion.
  We must look forward to the survival of small and rural communities; 
we should not be looking for opportunities to twist the dagger into the 
heart of rural America, the dagger that is offered by the Republican 
budget proposals.

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