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Congresswoman Karen Shepherd warns Utah lawmakers federal budget 'box' will squeeze state funding; urges cooperation on health care and transportation
Summary
Congresswoman Karen Shepherd told the Utah House that a new federal budget 'box' will freeze 1993 spending levels in real terms and force cuts to discretionary programs. She urged action on health care reform, warned against shifting Medicaid costs to states, and stressed urgency in securing transportation authorization funding.
Congresswoman Karen Shepherd addressed the Utah House in a Committee of the Whole, warning that recent federal budget decisions will constrain funding for states and force difficult trade-offs.
Shepherd said Congress “passed a budget with $250,000,000,000 worth of cuts,” and described a spending “box” that holds nominal federal outlays at 1993 levels for several years, effectively cutting discretionary programs by the rate of inflation. “Every single extra dollar we spend, we have to cut out another dollar,” she said, framing a squeeze that will fall on public safety, education and infrastructure if health-care costs continue to grow.
She told members that the health-care portion of the federal budget is the fastest-growing area and that Medicaid and Medicare “continues to grow” under the current system. Shepherd argued that without reform the temporary slowdown in health-care inflation could reverse, citing a 5.4% rate this year and warning it could return to higher levels if reform stalls.
On transportation, Shepherd urged lawmakers to support the state’s priorities for the Intermodal Surface Transportation Act authorization. She described a package that includes high-occupancy vehicle lanes, interchange reconstruction and a mass-transit component and said missing authorization this year could delay funding until a 1997 reauthorization.
During a question-and-answer period, members raised local environmental and Superfund concerns — including Sharon Steel and Kennecott — and asked about federal help. Shepherd said she serves on the Superfund reauthorization effort and expects to press the EPA and administration officials for solutions. She also warned against proposals that would shift the entire cost of Medicaid to states, calling that approach “the biggest unfunded mandate in the history of this country.”
Shepherd concluded by urging state lawmakers to continue pursuing local reforms and to use their plan as a constructive model for potential federal flexibility. The House dissolved the Committee of the Whole after her remarks and returned to its regular calendar.
