As they do every year, the government and the Knesset are in the process of approving next year's state budget. But unlike previous years, this government has declared that its budget will have two major social objectives: increasing the number of employed people from 69.1 percent of the population to 71.7 percent and increasing the income of the lowest five percent of the population by 15 percent, both by 2010.

Sound commendable? The problem, as SHATIL Social and Economic Initiative Director Ronit Heyd puts it, "While the government declares social objectives, it simultaneously decides on an Economic Arrangements Law that completely contradicts these objectives. We want to highlight and challenge that gap."

The Budget Arrangements Law is an anomalous Israeli invention that allows the government to pass economic measures without proper discussion by the Knesset. It ensures that the government's noble plans will come to naught.

"It's the Arrangements Law that actually has the teeth," says Heyd. "The cruel cuts come here." For example, the government declares that it wants to increase the number of employed people, but the Arrangements Law closes down government occupational training and re-training programs. It also freezes the minimum wage, removes all programs for immigrant scientists, reduces housing benefits for the poor, and much more.

In response, SHATIL has launched two initiatives. The first is SHATIL's Unemployment Forum, a group of social justice organizations that works to promote alternatives to current economic policy. SHATIL also organized an ad-hoc group of social organizations working together to influence members of Knesset to fight the socially hostile clauses of the Arrangements Law and to make the budget more socially responsible. In cooperation with the organization Life and Environment, SHATIL also has brought together Israel's major environmental organizations to advocate for specific budget allocations for environmental issues, including the struggle to reduce global warming. The forums are working in collaboration with the Knesset social and environmental lobbies.

In support of these efforts, SHATIL has been focusing on providing social organizations with the skills and tools they need have access to, read, understand and analyze the budget.

Heyd discussed SHATIL’s efforts to combat these contradictions Monday, August 13th on Israel’s Channel One’s Mabat L’Kesef (Financial News) and SHATIL’s Eran Klein was interviewed by the Jerusalem Report for their August 20 edition.