WASHINGTON, DC - Congressman Collin C. Peterson (DFL-7th District) reacted today with disappointment to the President's budget proposal.

 "I disagree with the President's budget priorities," Peterson said.  "The agriculture budget is cut and funding for veterans sees only a minimal two-tenths of one percent increase.  By contrast, the Environmental Protection Agency budget is increased 18 percent and the Department of Energy budget is increased 10 percent.

 "In addition to the reduced spending level for veterans, the VA is now suggesting that we cut claims for veterans with smoking-related illnesses to cover budget shortfalls in other areas," Peterson continued.  "Many veterans were issued cigarettes in their rations during wartime, and the government has an obligation to provide for the health care of those veterans.

"The VA budget already includes the money necessary to pay those smoking claims.  However, the VA claims that we will save 17 billion over five years if we exempt payment to these veterans."

Peterson is also concerned because the VA has not said where the savings from smoking-related illnesses would be used.

"The budget fails to take into account general health care inflation, and fails to deliver on the President's promised health care for Persian Gulf War veterans.  With no enough extra funds allocated for them, the money will have to be taken from other programs."

 When it comes to agriculture, Peterson believes that the President's budget request forgets the farmers.

 "While proposing a slight decrease in the USDA's budget, the Food Stamp Program was increased by $1.6 billion.  Farmers took the hit," Peterson said.  "We need to have a balanced budget but not on the backs of our farmers.

"We need funding priorities that reflect a commitment to our farmers.  USDA needs to concentrate on assisting farmers to compete in today's markets.  Better risk management tools and disease research are also critical to farmers in our area."

According to Peterson, there is one bright note in the agriculture budget.  "We do have close to $2 million proposed for scab research.  It is encouraging that USDA recognizes the seriousness of this problem and I hope we can continue to increase funding for this and other areas of agriculture research, " Peterson said.

Peterson also disagreed with the President's decision to fund new programs with money from proposed the tobacco settlement.  "It is hard to say what the settlement will look like when it reaches Congress," he said.  "In addition, folks in Minnesota do not appear to support this proposal."

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