Budget FY12

On April 15, 2011, Congresswoman Sanchez voted against the FY 2012 budget offered by House Republicans. The budget, which passed the House of Representatives but was opposed by every single House Democrat, proposed to radically restructure the enormously popular Medicare and Social Security programs.  

Under the Republican budget plan, traditional Medicare would be slowly phased out and replaced with a new voucher program that shifts healthcare costs to seniors.  Before Medicare, half of America’s seniors were uninsured.  Since Medicare was adopted, not only has it become the largest source of health coverage but it has also dramatically improved the quality of life for seniors.  The proposed plan would give seniors a fixed amount of funds each year to pay for a private insurance plan.  As a result, out-of-pocket costs for seniors would double, and quality health coverage will no longer be guaranteed.

The budget also hinted at similar changes for Social Security, where retirement benefits could be phased out, and funding shifted to other budget priorities.  Social Security is a promise to all Americans that they would have a chance to retire with dignity after a lifetime of hard work.  The Republican plan goes back on that promise by transforming Social Security into an investment rather than an insurance program.  Aside from an increased retirement age and decreased benefits, future Social Security beneficiaries would be facing a privatized form of “Social Security.”  Additionally, the Republican plan believes that the $2.6 trillion in reserves generated by worker contributions to the Social Security Trust Fund “are derived from dubious government accounting,” implying that the Republican Congress might not redeem the Treasury bonds in the Trust Fund when they are needed to pay benefits that are owed. In CA-47, over 85% of households benefit from Social Security and these cuts would have serious consequences for many families. Congresswoman Sanchez could not support this.