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PORTLAND—A coalition of environmental groups and labor groups criticized the federal budget passed by the Senate as fiscally irresponsible and environmentally harmful. The Senate budget, which passed by a narrow margin of 51-49, would open the Arctic National Wildlife Refuge to oil drilling and provide more than $130 billion in new tax breaks.

"With a $400 billion deficit, the federal government should not be giving more tax cuts to wealthy Americans," said OSPIRG Field Director Laura Etherton. "Moreover, the Senate should not use the federal budget to give the pristine Arctic National Wildlife Refuge to the oil industry," continued Etherton.

By including the drilling provision in the budget resolution, proponents of drilling avoided a debate on the environmental and economic impacts of drilling in the coastal plain of the Arctic Refuge. Recent analyses have shown that Congressional Budget Office revenue estimates from Arctic Refuge drilling, which assume oil company bids of more than $3000 per acre on average, do not match up with the reality on the North Slope. For the last 20 years, leases have sold for only $50 per acre on average. Such unlikely assumptions, coupled with recent indications of disinterest from big oil companies, make Arctic drilling a risky gamble.

"The Arctic National Wildlife Refuge is too important of a place to be voted upon in the federal budget. Senator Smith has done a great job by voting against oil drilling in the past, now we are calling on him to follow through with his promise to vote to protect the Arctic Wildlife Refuge," says Patrick Shannon, Alaska Coalition's West Coast Organizer.

While the Senate passed (52-48) a bipartisan amendment offered by Senators Gordon Smith (OR) and Jeff Bingaman (NM) to protect the Medicaid program from $15 billion in cuts, the House budget proposes as much as $20 billion in cuts to the Medicaid program, which could be included in the final budget.

Megan Sweeney, Executive Director SEIU Oregon State Council says, "We thank Senator Smith for his work to keep Medicaid cuts out of the budget and we believe he should continue his promise to preserve Medicaid funding for 500,000 Oregonians who rely on it for essential health services and long term care."

The Senate also passed (51-49) an amendment offered by Senator Edward Kennedy (MA) to increase college student aid funding by $5.4 billion. Senator Kennedy's amendment restored funding for student aid programs that would have faced elimination in the proposed budget, including Perkins Loans and Leveraging Educational Assistance Partnership (LEAP) grants. The amendment also increased the maximum Pell Grant award to $4,500, from $4,050. The House budget did not increase funding for student aid.

A bipartisan amendment offered by Senators Russ Feingold (WI) and George Voinovich (OH) to reinstate pay-as-you-go (PAYGO) budget rules failed on a 50-50 vote. PAYGO rules require that 60 Senators must support any new tax cuts or new spending that are not paid for. PAYGO rules, which are widely accepted as an important tool in helping the federal government achieve balanced budgets, existed in the 1990's until they expired in 2002. Without reinstating the PAYGO rule, the Senate will not have to pay for the $130 billion in tax cuts included in its budget-placing an even greater strain on federal budgets.

"This is simply an out of control, borrow and spend Congress," said Etherton. "Instead of trying to reduce the deficit and fund critical programs, they are more focused on tax breaks for the rich at the expense of all Americans, and supporting the oil industry at the expense of America's natural heritage," said Etherton.

The House and Senate will work over the next few weeks to remove the differences between their two budgets so that they can arrive at one budget blueprint for the entire Congress.

"This is a bad budget that is about to get much worse," said Etherton, "we applaud Senator Smith for working to improve the budget but are disappointed that he was one of the deciding votes to pass a budget that would drill in the Arctic," said Etherton. "If the final budget continues down the fiscally and environmentally reckless path paved by the Senate, Senator Smith should send it back to the drawing board."