The undersigned private voluntary agencies, members of InterAction's The Administration has proposed in its 1993 refugee assistance budget a reduction from 8420 million this year to $227 million in 1993, a reduction of 45%. The Administration further plans on reducing available funds by requesting a delay in obligating nearly 8117 million of the appropriation until the end of the fiscal year. For the entire yaar, only about $110 million would be available to managu the program. We understand that only $50 million is to be designated to critical cash and medical assistance, and that refugees who do not qualify for Aid to Families with Dependent Children (AFDC) or local general assistance programs would be denied these traditional programs of assistance. The result of such a substantial budget out would be the removal of a R-96% InterAction is a membership association of US. private voluntary organizations engaged in internallanal humanitarian efforts. 05-20-92 01:01PM P004 #05 R-96% and public agencies that work to make resettlement successful. We do not believe that a need for The impact would be severe and immediate. It would mean that roughly 48% of the We understand, Mr. Chairman, that many important social servios programs are facing financial cutbacks at this time and we do not presume that the funding levels which supported this program in years past can legitimately be reclaimed. But the reduction proposed by the Administration sends a dangerous signal to the refugee resettlement community that the government's resolve to assist humanitarian programs for needy reflugves in faltering -- a signal that the government is retreating from the successful private-publie partnership that has resettled more than 1.5 million refugues since 1975. This retreat poses unfair burdens on status, local governments, and private agencies, whose resources to assist refugees are already stretched beyond the limits. In short, it places the entire program in extreme jeopardy. For these reasons, Mr. Chairman, we strongly recommend an appropriations level of at least $424 million, the amount proposed by the House Budget Committam earlier this year. This amount is necessary to enable the current level of services to the estimated 120,000 reftigees who will be admitted into the United States during fiscal year 1993. R-96% It is important to point out that our recommendation for this level of funding is sembinad The current budget crisis has served to redouble these efforts to seek out and implement alternative methods along this model. The recent proposal by the Office of Refuges Resettlement (ORR), developed in response to the $227 million budget request, is based on this model and therefore warrants our close attention. As currently understood, the ORR proposal would replace the special refugee cash The conceptual framework as envisioned by the private voluntary agendes would allow for the provision of transitional income assistance together with extended case management and employment services, all interrelated, for the non-AFDC eligible caseload. This we feal, would greatly improve the refugees ability to move more quickly to durable self-sufficiency. 05-20-92 01:01PM P006 #05 R-96% Given adequate funding and appropriate medical coverage, we believe the concept behind the ORR proposal is a new approach to resettlement which could achieve long-term cost savings while simultaneously result in better resettlement outcomes. Some of the potential benefits wa would anticipate include the following: Refugees served in the transitional resettlement program (TRP) could be provided an arrRY An increase in the percentage of funds applied directly to programs and services; Increased administrative flexibility which would allow agencies to more efficiently and Refugees served under the TRP would be removed from large public assistance programs Under the TRP eligible refugees could be provided transitional assistance to meet housing, While we are pursuing the ORR initiative, we reiturate the concern of our state and local government colleagues that ORR's proposed budget level of 8237 million is unrealistically and irresponsibly low. Within the $227 million request, the voluntary agency resettlement program portion of this budget -- $74 million -- is simply not adequate to support the community programs necessary to help newly arrived refugees R-96% achieve self-sufficiency. Initial estimates show that significantly increased funds would be We are also concerned that refugees have adequate medical coverage during their initial period of resettlement. The currant ORR proposal anvisions private medical insurance at a budget of $20 million. The necessary coverage cannot be obtained at that level of funding. According to preliminary estimates, the costs for refugee medical assistance in 1902, which covered 12 months of reimbursement were roughly $68 million. We would recommend that similar levels of funding be reserved for fiscal year 1998, preferably to continue as a special refuges madical assistance program. Conclusions We believe that the ORR proposal should not represent a shift of essential costs from the US government to the private sector. We believe that good public policy must require adequata funding to ensure the success of programs aimed at early self-sufficiency. Working refugees are tax paying, contributing members of American communities. The alternative in costly long-term reliance on publicly funded cash assistance and social servion programs, and the exacerbation of other social problems. Each voluntary agency has a distinguished history in refugee resettlement, some extending back to World War II and before. Our capacity to administer national programs of reflagen assistance through long established networks of community based affiliates, and in partnership with federal, state and local governments and Mutual Assistance Associations, is a matter of publie record. We recognize that current budget realities require new thinking and new approaches to refugee resettlement. The ORE proposal represents such thinking and presents a conceptual framework that we believe offers the most efficient and effective use of available resourous. 05-20-92 01:01PM P008 #05 |