Using the federal fiscal relief that was provided
as part of President Bush’s tax cut package, will not only provide
stability for families, but will also provide breathing space to you and
other policy makers that will allow you to develop and enact budget and tax
policies that will get Ohio on track to budget stability. Unless this is
done, regardless of whether we use these funds now or later, Ohio will
continue to revisit budget cuts and be forced to make extremely
distasteful choices that weaken rather than strengthen the state.

Using these funds now, cost less now and in the
future. For example—

• low-income
  parents who work cost less than parents who must depend on public
  assistance.
  
  

• Five-
  and six-year-old children who are not ready for school are more likely to
  drop out, have more health problems, have more special or remedial
  education needs, have greater contact with the juvenile justice and adult
  corrections’ systems.
  
  

Cuts to child care aid and health care
for parents are barriers to work and self-sufficiency. Child care and
health insurance have long been recognized as necessary supports for
working families. More than 17,000 children will lose child care aid, and
50,000 poor working parents will lose their health care insurance if the
Governor’s and House’s proposals are enacted. 
Such cuts would weaken, and in some cases break, families
attachment to the workforce. Please use the federal fiscal relief to
provide child care aid and to retain Medicaid coverage for parents at or
below the poverty guideline.

Ohio made a commitment to those transitioning from
welfare to work, and those who earn little, but need help to retain their
jobs. Department of Job and Family Services officials have often stated
that by providing work supports—transportation, food stamps, clothing,
child care and Medicaid—there are no excuses for people not to succeed.
Obviously, these administration officials recognize the importance of
child care and health insurance to help parents obtain and retain
employment.

You are familiar with these issues, I need go no
further. In the case of Head Start Plus, the Ohio United Way
supports child care and Head Start stakeholders in their call to wait a
year to study and develop a consensus plan to develop and implement a
seamless system of early care and education. It is clear that Head Start
Plus is not the correct path to reach that goal. Thank you for recognizing
that the Head Start Plus program could not be operationalized in time for
FY 2004. We remain concerned that the current substitute bill would
implement Head Start Plus in FY 2005. We believe that the Legislative
Office of Education Oversight’s study, added to stakeholder input in
identifying workable options, are critical to ensuring a smooth,
successful, transition to a seamless system of early care and education.

Ohio’s safety net for childless adults is
composed of three state-funded programs—Adult Emergency Assistance,
Disability Assistance Cash, and Disability Assistance Medical. 
Since FY 2001, funding for the Adult Emergency Assistance program
has dropped from $4.2 million to $903,000 this year. Single adults and
couples with incomes of 40 percent of the federal poverty level [$3,600
and $4,800/year respectively], and the elderly ages 65 and over who
receive SSI are currently eligible for AEA. There is no other source of
emergency aid for this population. The United Way recognizes that Ohio’s
fiscal condition is forcing you to make difficult choices. We ask you to
fund the AEA program at its FY 2001 funding level of $4.2 million. If
money cannot be found, we ask that you consider earmarking $4.2
million/year in the Family Stability [600-521] line item in the Department
of Job and Family Services.

Communities and extremely poor people depend on
this program to meet emergency needs. Unfortunately, neither the United
Way system, nor foundations can replace lost state funding. We too have
been negatively affected by the downturn in our economy.

Thank you for your hard work and for the
opportunity to share our concerns. I am happy to answer questions.