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Press Release Published: May 18, 2010

The American People Have Spoken – Price-Jordan YouCut Proposal Would Save Taxpayers Billions of Dollars

WASHINGTON. D.C. – House Committee on Oversight and Government Reform Ranking Member Darrell Issa (R-CA) today issued the following statement praising the first winning YouCut proposal announced by RSC Chairman Tom Price (R-GA) and  RSC Budget and Spending Task Force Jim Jordan (R-OH).  The spending cut would eliminate a $2.5 billion Non-Reformed Welfare Program.

“Spearheaded by House Republican WHIP Eric Cantor, YouCut is an innovative and effective vehicle to communicate with the American people directly and carry their message about the urgent need for Democrats in Congress to stop this spending binge and take substantive action to eliminate unnecessary and duplicative programs that are costing the taxpayers billions of dollars,” Issa said.  “Reps. Price and Jordan have put forward a spending cut that will eliminate an unnecessary $2.5 billion program that is unaffordable and undermines welfare reforms we passed in the mid 1990’s.”

YouCut VOTE BACKGROUND— Of the YouCut votes cast, less than 1 percent came from inside the beltway. In addition to the 280,000 plus cast, there have been over 15,000 email submissions of spending-cut ideas.

Final Results:
17.45% for 1 – Presidential Election Fund
27.06% for 2 – Taxpayer Subsidized Union Activities
11.89% for 3 – HUD Program for Doctoral Dissertations
29.07% for 4 – New Non-Reformed Welfare Program
16.53% for 5 – Eliminate Wealthier Communities from CDBG

Issa added, “For all the talk by the Obama Administration and Congressional Democrats about the urgent need to address an escalating deficit that is jeopardizing the future solvency of our country, there isn’t a whole lot to show for it.  Proposals, like the ones outlined by Reps. Price and Jordan, can provide Democrats with an opportunity to match their rhetoric with action.”

BACKGROUND ON WINNING SPENDING CUT: In 1996 Congress and the President joined together to implement a bipartisan reform of our nation’s welfare system. Since then welfare caseloads dropped by an unprecedented 60% as work and earnings by low-income parents rose by record levels. Despite the bipartisan support for the 1996 reforms, some Members, led by reform opponent Rep. Jim McDermott (D-WA), included several provisions in the 2009 stimulus law to undermine the successful welfare reforms – including a new “welfare emergency fund” designed to promote welfare dependence.

The welfare emergency fund provided States with up to $5 billion in new Federal funds in 2009 and 2010 if they increase welfare caseloads, among other outcomes. Of that $5 billion thus far $2.4 billion has been spent; including, $1 billion for “basic assistance” (i.e. welfare checks), $1 billion for “non-recurrent short-term assistance,” and under $400 million (16%) for “subsidized employment.”

Here is just one example of how States spent this money on “non-recurrent short-term assistance.” Last summer New York State used welfare emergency funds to make one-time $200 per child “back to school” payments to welfare and food stamp recipients. But many recipients didn’t use the money for back to school supplies. As CBS News reported, the funds were used in many cases to purchase “flat screen TVs, iPods and video gaming systems;” and convenience stores in certain areas “noted marked increases in beer, lotto and cigarette sales.”

Despite the documented waste of taxpayer funds, the majority in Congress is proposing to continue the program for another year and add another $2.5 billion in new money. As the YouCut vote winner, the proposal put forward by Rep. Tom Price (R-GA) and Rep, Jim Jordan (R-OH) to terminate this program will be brought up for a vote in the House this week. Members of Congress – from both parties – will have the opportunity to vote as to whether or not this program should continue or whether it should be terminated the savings used to reduce the deficit.

Visit the YouCut Website HERE.