Small Business Committee Democratic Site

STATEMENT
of the
Honorable Nydia M. Velázquez, Ranking Democratic Member
House Committee on Small Business
Press Conference on Bush's FY 2005 Budget and its Effect on Small Business
March 4, 2004

Good morning everyone and thank you for coming.

Next week, the Budget Committee will mark up the Bush administration's FY 2005 budget proposal. This budget is not about getting our nation back on track, but about stubbornly sticking to economic policies that have not worked and are to the detriment of so many in this country.

As the culmination of Bush's economic policies since his time in office, this budget is about fiscal irresponsibility, ballooning deficits, anemic job growth, and turning away from our nation's most important economic sector - small businesses.

While the 2005 budget should be about strengthening our economy and putting Americans back to work, it is more about sticking to economic fixes that have gotten us nowhere fast. Instead of doing what is best for our country, this administration is about saving face. The White House is so committed to its failed economic policies that it is willing to pursue them while cutting the very small business programs aimed at job creation and economic growth in our local communities.

There is a lot of talk by the Bush administration about small businesses and how they are key to providing jobs and strengthening the economy. Right now, President Bush is in Bakersfield, California giving an economic speech, and I guarantee you he will talk about small businesses, the role they play in the U.S., and how his administration has helped them. But President Bush hasn't helped small businesses - he's failed them.

Just look at his 2002 small business agenda - nothing got done. Or his manufacturing agenda - again, nothing was accomplished. Or his billion-dollar tax cuts - not much in there for small business. Or his budget requests year after year - say goodbye to small business programs across the federal government.

Which is why we are here today - to expose the Bush administration's credibility gap between what it says and what it actually does. Nowhere is this more apparent than when it comes to the small business sector.

For small business owners, there is something in this budget for everyone to hate. Programs to help manufacturers and high-tech companies - either cut or gone. Programs to help small businesses in both rural areas and urban ones - it's the same story - either cut or gone. Programs to get capital or government contracts into the hands of small business owners, or provide training for small business workers, or to help rein in energy costs - cut, cut and cut.

This president has said that he is in touch with our country and its needs. This budget shows that he is not. President Bush says he wants to give our economy the appropriate tools for job creation. This budget makes it evident that he does not. He has also talked about his tax cuts and how they have worked for small businesses. If this were the case, then we would see more jobs, given that small businesses generate the majority of new jobs in this country - and we don't. It shows us the growing disconnect between the president and the American people, including small business owners.

Our budget report - which outlines 36 small business programs that have been either cut or terminated in Bush's FY 2005 budget - is proof of this disconnect. The average cut to these programs is over 70 percent and half of the programs were eliminated. That is not the marginal cuts the president claims - these are mortal blows.

This administration continues to blindly follow its policies instead of admitting its mistakes and attempting to make things right. I can tell them how they can make things with our economy right - don't cut or terminate programs that help small business. Unfortunately, that's exactly what this budget does.

We are hopeful the Budget Committee will take this report, use it, and see the shortcomings that are incredibly evident to me and my colleagues, as well as small businesses across the country. By underfunding or getting rid of programs that help our entrepreneurs, we only stand to hurt them and our economy as a whole.

It's about time this administration set its priorities straight by moving small businesses up to the top of the list. After all, their priorities are the priorities of the American economy, as they set the stage for our economic future.