Government services, structures and systems are an essential foundation for a healthy economy where opportunity and prosperity are broadly and equitably shared. During this session, panelists discussed key provisions in the federal budget, upcoming budget debates, and strategies that connect racial and economic equity and an inclusive democracy.
Robb Gray, Director of Policy-Advocacy |
Sharon Parrott, President |
Taifa Smith Butler, President |
Cosponsors: Children, Youth & Family Funders Roundtable, EITC Funders Network, and Workforce Matters
Webinar Recap:
On April 6, 2022, Economic Opportunity Funders hosted the first program in their 2022 Budget and Tax Briefing Series to discuss the federal fiscal policy outlook against a backdrop of midterm elections, a stalled Build Back Better bill and, of course, the ongoing effects of the pandemic. We were joined by Sharon Parrott, president of the Center on Budget and Policy Priorities and Taifa Smith Butler, president of Demos. The discussion was moderated by Robb Gray, director of policy-advocacy for the W.K. Kellogg Foundation.
As the Biden administration returns to the drawing board to advance its fiscal vision for the country, the upcoming policy debates present an opportunity to lift the voices of the communities most affected by those policies. This starts with efforts to make the budget development process more open and understandable to the general public and giving them an opportunity to weigh in, rather than only allowing corporations to line the pockets of those who will support their interests. Participatory budget processes are a way for the people to have a say in where dollars go – and hold their government officials accountable.
With a strong interest in getting an economic package across the finish line, the Biden administration reiterated its commitment to securing an economic package. Rather than putting forward a set of compromise proposals, which could make the negotiations with Congress harder, the Budget creates a “reserve fund” for the package and “name checks” policies it hopes will be included (including proposals that are very unlikely to make it in a final package). Beyond the economic package, the budget calls for significant increases in spending on a range of non-defense programs like Title I education funding, funding streams for tribal communities, Pell grants, and mental health programs and access through Medicaid. In addition, the budget includes a set of progressive proposals on the revenue side – calling for higher corporate tax rates and taxes on the country’s most wealthy individuals. Even if every policy does not pass (and that is surely the case), the budget proposals can help start to build support for these issues in the future. And with the Trump administration’s 2017 tax cuts expiring in 2025, there is an urgency around pushing these revenue proposals forward.
Ultimately, those who are leading and funding this work need to push back against the notion that there is not enough to invest in our social infrastructure. We need to recognize that our budget process and our democratic process are not separate. Strong civic participation in fiscal policy development is part of a strong democracy. And ensuring historically disenfranchised communities are a part of these conversations is key to fighting the inequities that continue to plague our economy.
