Making Sense of the Fiscal Cliff

Last month Lisa Hughes defined the fiscal cliff in a Prevent Cancer Foundation blog post, describing the economic effects that could “result in tax increases, spending cuts and a corresponding reduction in the budget deficit at the end of 2012.” In order to achieve their goal of decreasing the deficit by almost 50%, Congress has to dramatically reduce its spending, an act easier said than done. Last year Congress passed a Budget Control Act which saved the government from defaulting by putting in place a series of laws which would guarantee a reduction in the deficit through sequestration by the end of 2012. In 2011, almost 80% of the spending budget could be classified as one of four types of spending: discretionary, Defense Department, Social Security and Medicare/Medicaid. Of these categories, only discretionary (18%) and Defense Department (19%) spending could legally be subjected to cuts.

When presented with these options, it might seem that slashing the discretionary budget is a suitable option, given that it is not defined by existing legislation and must be set annually by Congress. What you may not realize, however, is that discretionary spending encompasses all the government departments, agencies and programs that affect our daily lives. Over the next 10 years, Congress plans on cutting $110 billion from discretionary spending; this amount will be evenly split between non-defense and defense discretionary spending, despite defense spending’s budget being much larger.

How will the Fiscal Cliff Affect Healthcare?

Allow me to explain exactly why you should care that by 2022, non-defense discretionary spending will have shrunk to its lowest amount since 1962. The agencies that derive funding solely from non-defense discretionary spending also happen to be the agencies that are almost entirely responsible for the longer, healthier lifespans that we as Americans enjoy today. The National Institutes of Health, the National Cancer Institute and the Centers for Disease Control and Prevention all rely on funding from the non-defense discretionary budget. If Congress follows through with its planned cuts, Americans will lose out on $55 billion worth of research, educational programs and direct health services over the next decade. Researchers will not receive grants and future medical breakthroughs responsible for drastically reducing mortality from diseases like cancer will be in jeopardy. In the past decade alone, we have seen the introduction of therapies and vaccines which reduced incidence and mortality rates for countless diseases like breast, cervical and colorectal cancers. Without funding, we cannot hope to see the same kind of success in diseases like pancreatic cancer that has a steadily rising mortality rate.

Don’t Let Congress Compromise Your Health!

Additionally, if medical research is allowed to stagnate, our nation’s economic health may decline. More Americans than ever will be missing work to spend time in doctor’s offices and hospitals, and those who will be diagnosed with chronic diseases might even lose their jobs, along with any possibility of covering their health expenses themselves. The negative impact these cuts will have on the economy could be tremendous. The grants provided through this funding go far in spurring economic activity, beginning with the salaries of medical researchers who could go on to create pharmaceuticals which could generate millions in revenue.

By allowing our leading medical research organizations to be under-funded, we are putting the health of ourselves and our loved ones at risk. It is not too late to keep this from happening. We are asking you to get involved in the fight for your health. Reach out to your Senator and member of Congress and tell them that you do not support cuts to non-discretionary defense spending and ask your friends and family to do the same.

Prevent Cancer plays a role in this process, advocating each step of the way for maximum funding to be directed to research and cancer control efforts that will positively impact our ability to prevent or detect cancer early. And with a growing deficit and shrinking discretionary spending, securing funding has become a greater challenge in recent years.

On Monday, President Obama took the first step to move the Federal government towards a FY 2013 budget, with the release of his budget request. The President’s budget contains either flat funding, or small reductions in many of the programs that are critical to moving research and cancer control forward. And perhaps more alarmingly, money from the Prevention and Public Health Fund (created by the Affordable Care Act) is used to fund existing cancer prevention and control efforts at the Centers for Disease Control and Prevention, as opposed to serving as an infusion of NEW MONEY into prevention efforts.

So while the initial funding proposal is on the table, the process is just beginning. Congress will now begin discussion on the President’s budget and create their own budget proposal known as the Budget Resolution. As with any bill, in order to be enacted, the House and Senate versions must become reconciled with agreement on every detail.

We then move into what I consider the heart of this cycle, the appropriations process. The budget is separated into 13 separate areas, often by agency, and 13 individual appropriations bills are created. The Appropriations Committee, and their subcommittees, hold hearings and engage in debate over the specifics of discretionary spending. Each appropriations bill must be passed, reconciled between the House and Senate, passed again, and signed by the President. If the President believes programs or funding levels approved by Congress vary too greatly from those set by the president in his or her Budget Proposal, the president can choose to veto one or all of the spending bills.

Eventually, after months of debate and discussion, the government, and cancer prevention, will be funded. Prevent Cancer will be working every step of the way to ensure that the budget supports prevention to the maximum extent possible. We will be looking to you to add your voice to this effort as well. To receive information and learn how you can weigh in on this process, join our Advocacy Action Center today!