News From Congresswoman
Nydia M. Velázquez
Representing New York's 12th Congressional District - Brooklyn, Manhattan, Queens
Ranking Democratic Member, House Small Business Committee

For Immediate Release
February 18, 2005

CONTACT: Kate Davis, Allyson Ivins, (202) 225-4038

Democrats Decry Unjust Budget Process
Chairman's cancellation of views mark-up for SBA budget decries bipartisanship

WASHINGTON - With Congress adjourning for the President's Day district work period, Democrats on the House Small Business Committee, in a letter to Chairman Donald Manzullo, expressed disappointment in the committee's failure to hold a meeting in order to review and approve the views and estimates on the administration's FY 2006 budget request for the Small Business Administration (SBA).

The letter to the Chairman asked him to reconsider his decision to not hold a meeting to consider the views and estimates. The letter states, "We ask that you reconsider your decision to discharge the Committee of its responsibilities. Given the significant effect the FY 2006 budget submission has on the SBA's ability to serve our nation's entrepreneurs, we believe it is our duty to meet in an open forum to discuss and debate the Committee's Views and Estimates on the administration's budget submission."

Under the Budget Act, all committees are required to submit annual budget views and estimates to the House Budget Committee. The views and estimates mark-up provides Members with an opportunity to critique the budget and analyze the spending priorities, so the Budget committee can make informed decisions in crafting a budget resolution. By failing to hold a mark-up, the Chairman is denying Members of the House Small Business Committee the ability to raise questions, address issues, and express their opinions on the president's FY 2006 budget.

Congresswoman Velazquez called the move "unprecedented," stating that, "In my entire service on the House Small Business Committee, no Chairman - Democrat or Republican - has ever bypassed the committee's duties when it comes to evaluating the administration's budget proposal. This is simply unbelievable."

The FY06 budget request for SBA is half of what it was when President Bush first took office - and has been $100 million less each year. An array of critical SBA programs that provide access to capital, technical and development assistance to entrepreneurs have been slated to be cut or eliminated. The BusinessLINC program, Small Business Innovation Research (SBIR) Rural Outreach, the SBIR FAST program, and SBA's flagship lending program, 7(a), all received no funding. Among those that saw cuts in their funding were the HUBZone program, SCORE, Small Business Development Centers (SBDCs) and the Women's Business Centers (WBC). In addition, the Microloan program, which offers small loans to start ups, particularly in low-income communities and the SBIC Participating Securities program - SBA's largest venture capital program - were slated for termination.

"Clearly, the FY 2006 budget for SBA is not a good one - there are far too many vital programs being slated for cuts and eliminations that our nation's 23 million small businesses rely on," Congresswoman Velazquez said. "Our committee's views and estimates are used by the Budget Committee to determine spending priorities - this is one of our most important responsibilities. It makes no sense to me that this committee would not stand up and fight for small business."

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