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
March 4, 2004

CONTACT: Wendy Belzer, Kate Davis, (202) 225-2361

Report Shows Harmful Effects of Bush
Budget on Small Business
Federal programs aimed to aid small businesses are underfunded, terminated

WASHINGTON - Congresswoman Nydia M. Velázquez (D-N.Y.), Ranking Member of the House Small Business Committee, today joined her Democratic colleagues to release a report on President Bush's FY 2005 budget and its effect on small business programs.

"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," Congresswoman Velazquez said. "Unfortunately, this latest budget does not back up any of that talk. As this report reveals, the programs aimed at helping small businesses saw a more than 70 percent cut. That is too high a price to ask our small business owners to pay for deficit reduction - especially from an administration that claims to care about small enterprise."

The report was compiled by the Democratic staff of the House Small Business Committee by comparing budget requests, appropriation amounts and authorization levels from previous fiscal years. It identifies 36 programs serving the small business community that were either cut or terminated in the Bush administration's FY 2005 budget proposal. In addition, the report examines a number of tax measures that would specifically help the small business sector that were excluded from the budget.

"For small business owners, there is something in this budget for everyone to hate," Congresswoman Velazquez said. "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 budget comes at a critical time as this nation's small businesses are struggling to create enough new jobs to prevent the economy from ceding the limited gains it has made over the past year. Since President Bush took office, millions of private sector jobs have been lost, and less than 150,000 new jobs were created during the last two months, well below the level needed to revive the labor market and sustain a long-term recovery.

"This president has said that he is in touch with our country and its needs. This budget shows 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 business. 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. It's about time this administration set its priorities straight by moving small businesses 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."