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Unfunded Programs Cost States $29 Billion By ROBERT TANNER AP National Writer
It's an old gripe, but one with an increasingly large price tag: States say they're now paying at least $29 billion for programs that Washington launched but did not fully fund--including education, prescription drugs, homeland security and more.
Similar complaints a decade ago spurred a federal law reining in the practice. But loopholes mean the buck is being passed more and more, state leaders said Wednesday as they called on the Bush administration and Congress to use the federal budget to set things right.
``It feels like the late 1980s and '90s all over again,'' said Utah House Speaker Marty Stephens, a Republican and president of the National Conference of State Legislatures. ``States' own budget programs and priorities are being supplanted by federal spending priorities.''
But watchdogs in Congress and others have questioned whether states overhype allegations of so-called unfunded mandates, noting that many programs are voluntary.
A report released Wednesday from the NCSL, a bipartisan group of state lawmakers, said the $29.7-billion estimate was conservative, and the total could be as much as three times higher. It accounted for 6 percent of states' total general fund spending. Costs include: --$10 billion for special education programs. --$9.6 billion for No Child Left Behind. --$6 billion for prescription drugs for Medicare-eligible patients. --$1 billion for environmental regulations.
The costs are expected to rise to $34.2 billion next year, the report found.
``States can ill afford to shoulder this burden,'' Stephens said. ``During a time of fiscal crisis, it's unbearable.''
A 1995 federal law sought to put an end to unfunded mandates. Its success has been eroded in recent years, the report found, through loopholes that include exemptions to the law, conditions placed on federal grants to states, and the failure of Congress to fully fund the laws its passes.
Not everyone agrees that the problem is as widespread as states claim.
The Congressional Budget Office, charged by Congress under the same 1995 Unfunded Mandate Reform Act to assess the impact of federal policy on the states, reported in July that only two laws passed in the last seven years imposed costs of more than $50 million on states. They were a 1996 increase in the minimum wage and a 1997 decrease in spending on food stamps.
The report specifically found that Bush's No Child Left Behind law and an older special education law are voluntary programs, and aren't technically mandates.
A budget expert at the conservative Heritage Foundation said that states have grown addicted to federal money and simply want more of it.
``If states are getting a raw deal, they can leave (such programs),'' said Brian Riedl. ``There's a difference between an unfunded mandate and a program that the states just want more federal money for ... Washington can't be blamed for that.''
While the CBO found virtually no evidence of unfunded mandates, its latest report echoed, in part, some of the states' complaints of loopholes in the federal law, and found that more than 600 federal proposals between 1996 and 2002 would impose additional costs on state and local governments while not falling under the definition of a ``mandate.''
NCSL officials said that homeland security programs and Bush's education law may be voluntary, but the reality is that states can't simply walk away from them.
Stephens said in Utah, the state used to receive $75 million in education money for disadvantaged children. Now that money has been rolled into $100 million for Bush's new education law, adding all the requirements for testing and more.
``It's kind of a shell game, in a way, when they say we have a right whether to participate,'' he said. ``If we don't, we lose money.''
He and other leaders said they hoped to work with Congress to add funding to cover state costs, and also to tighten the 1995 law to better protect against shifting costs to states.
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On the Net:
National Conference of State Legislatures: http://www.ncsl.org
AP-NY-03-10-04 1814EST
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