FY2010 Federal Budget Overview

Tuesday, May 12, 2009

Prepared by:National Association of Regional Councils

What is NARC?• National non-profit membership trade

organization• Represents multi-jurisdictional regional

planning organizations - COGs, MPOs, LDDs, RPOs – large and small, urban and rural– Members like MWCOG

• Formed by NACo and NLC to address regionally based challenges and produce solutions

What is NARC?

• Governed by local elected officials• NARC President: Hon. Steve Cassano,

Selectman, Town of Manchester, CT• Concentrate on four core areas

– Transportation– Economic & Community Development– Homeland Security/Public Safety– Environment

Federal Budget Timeline• 2/24/09 State of the Union: “…invest in areas

like energy, health care and education that will grow our economy, even as we make hard choices to bring our deficit down.”

• 2/26/09 Obama budget “Blueprint”– broad outline for FY10 = $3.55T

• 4/29/09 Congress passed FY10 Budget Resolution = $3.5T

• 5/7 & 5/11/09: Obama releases FY10 detailed spending requests and proposed cuts

• Congress works on FY10 appropriations bills

Emerging Budget Priorities• Climate Change• Energy efficiency, alternatives, renewables• Transportation• Housing• Sustainable Communities – Interagency

Coordination & Planning• Economic Development• Education and Training• Metro & Rural

“This budget -- is a bookend to that stimulus package. It is though, the foundation for how we go forward into the future. We must see that this budget in the context of the issues in which we are trying to advance. They have their justification...but they are also investments that will grow our economy and create jobs.”

- House Speaker Nancy Pelosi (D-CA)

FY10 Budget Resolution• 5-yr spending and tax blueprint – based on

Obama budget overview– Paves the way for a number of the

administration's legislative priorities• Sets congressional spending and other

budgetary limits for FY10– Determines actual funding of individual

departments, agencies and programs • $1.09T for 12 FY10 spending bills

– $10B less than Obama request • Projects $1.2T deficit for FY10• No Republican support

Highlights: FY10 Budget ResolutionEnergy$5.7B, including civilian energy and environmental programs of DOE

Natural Resources and the Environment$35.1B, including funding for environmental protection, recreation and management programs of the Agriculture, Commerce, Interior and Transportation departments, as well as the Army Corps of Engineers and EPA.

Agriculture$6.1B, including research and education programs, economics and statistics services, administration, and inspection.

Commerce and Housing$13.4B for the commerce and housing credit function, and other advancement of commerce programs.

Transportation$31.4B, including USDOT programs, such as the FHWA, FTA, FAA, Amtrak and other programs.

Community & Regional Development$15.9B, including economic and community development programs in both urban and rural areas – CDBG, federal commissions, USDA rural development, the FEMA and other disaster-related and community-related programs.

Education, Training, Employment & Social Services$89.4B, including funding for Dept of Education, social services programs within the HHS, and employment and training programs within the DOL and other programs.

Highlights: FY10 Budget ResolutionReserve Funds:• Creates many deficit-neutral funds to adjust spending levels to accommodate

legislation covered by the funds• No money set aside • Creates bipartisan congressional sunset commission to review federal programs

and establish a process for eliminating “obsolete and duplicative” programsEnergy• Tax incentives to expand offshore oil and gas production• Production of renewable energy and green jobs• Investment in clean energy technology and GHG reductionsInfrastructure – investment in infrastructure projectsEconomic Stabilization – revitalize and strengthen the domestic manufacturing,

tax relief, housing assistance, overhaul the internal revenue code, changes to trade policy and unemployment mitigation

“This budget builds on the steps…to move this economy from recession to recovery and ultimately to prosperity. We have to lay a new foundation for growth…that will strengthen our economy and help us compete in the 21st century.”

- President Barack Obama

FY10 President’s Budget Request• TOTAL = $3.6T spending plan

• Critical investments:– Education — Renewable energy– Healthcare reform — Affordable housing– Public safety — Transportation

• $17B in cuts from 120 programs– $25M DOT Rail Line Relocation Grants– $15M EPA California Diesel Emissions Reduction Grants program – 5% off Army Corps of Engineers budget – $11.5B from the Appropriations Committees’ discretionary

spending pots

• CBO estimates $1.7T deficit (11.9% of GDP) this year – $1.1 trillion deficit (7.9% of GDP) next year– the largest deficits as a share of GDP since 1945

FY10 Proposed Discretionary Spending

Figures in millions

From Congressional Quarterly

Federal Agency: USDAFY10 Budget = $25.7B FY09 Enacted = $24.1B

• $61M Rural economic development &infrastructure• $1.3B Rural broadband and telecommunications

services (loans and grants)

• $250M Rural renewable energy (loans and grants) • $70M Rural revitalization, education, and land grant

programs• $68M increase to protect national forests• $120M Land and Water Conservation Fund• $876M Conservation Operations• $40M Watershed Rehabilitation

USDA - $28B in ARRA

Federal Agency: DOCFY10 Budget = $13.8B FY09 Enacted = $9.3B• $246M for EDA Economic Assistance Programs

– $16.5M Global Climate Change– $72.8 Public Works grants– $31M Planning grants– $13M Technical Assistance grants– $2M Research and Evaluation– $15.8M Trade Adjustment Assistance– $125M Economic Adjustment Assistance funding includes:

$50M Regional innovation clusters (new)

• Regional planning and matching grants • to leverage a region’s existing competitive strengths and boost job creation

and economic growth.  $50M New businesses in distressed areas to create a nationwide network of public-private business incubators (new)

Mix of Increases & Decreases for Federal data activities under U.S. Census

Increases for Federal climate activities

DOC - $7.9B in ARRA

(+$11.2M)

(-$60M)

(+$90M)

(level) (+$3.6M)

(level)

(+$1.5M)

(+$1.3M)

Federal Agency: DOEFY10 Budget = $26.4B FY09 Enacted = $26B

• $2.3B Energy Efficiency, Alternatives & Renewables– $301M Weatherization Assistance (+$50M)

– Lots of R&D money– No funding for EECBG

• $174M Smart Grid Modernization

General Priorities:- Science, Discovery & Innovation - Lowering GHG emissions- Clean, Secure Energy - Economic Prosperity- National Security

DOE - $38.7B in ARRA

Federal Agency: DHSFY10 Budget = $42.7B FY09 Enacted = $40B

• $3.9B FEMA State & Local Programs– $666M for Urban Area Security Initiative (+$37M)– $35M Regional Catastrophic Preparedness Grants (level)– $15M Citizen Corps Program (level)– $315M Emergency Management Performance Grants (level)– $250M Public Transportation Grants (level)– $250M Port Security Grants (level)– $50M Interoperable Emergency Communications Grant Program

(-$20M)– $137M State and Local Training Programs (-$59M)

– $150M Pre Disaster Mitigation Grants • $2B Disaster Relief Fund

DHS - $3.5B in ARRA

Federal Agency: HUDFY10 Budget = $43.7B FY09 Enacted = $40.7B

• $4.5B Community Development Block Grants (+$540m)– $150M Sustainable Communities Initiative-integrate (new)

housing/transportation & reform zoning and land use• $100M Regional Planning Grants for MPOs/HUD block grant corsortia• $40M Metropolitan Challenge Grants to encourage sustainable growth

• $25M Rural Innovation fund-competitive grants for promoting innovative approaches to improving rural housing (new)

• $1.825B HOME Investment Partnerships program (+$125M)

• $17.8B rental assistance programs • $1B Affordable Housing Trust Fund (new) • $250M New Choice Neighborhood Initiative-extreme poverty areas (new) • $100M energy-efficiency construction grants (innovation fund) (new)

• $10M HUD-DOT strategies for public housing and transportation accessibility (new)

HUD - $13.6B in ARRA

No funding: Sec. 108, Brownfields EDI, or EZ or RC, NSP or Rural Housing

Federal Agency: DOIFY10 Budget = $12B FY09 Enacted = $11B

• $50.1M clean energy future (renewables) on Federal lands and waters

• $133M impacts of climate change• $46M Water Conservation ($26M in competitive grants for localities)

• $420M Land and Water Conservation Fund ($30M for States, local and tribal governments)

• $2.5B Indian Affairs

USDA rec’d $3B in ARRA

Federal Agency: DOLFY10 Budget = $13.3B FY09 Enacted =

$12.9B

• $3.8B Workforce Development– $2.9B for WIA

• $50M Green Jobs Innovation Fund (new)

– competitive grants for green industry workers job training

• $15M Workforce Data Quality Initiative (new)

– competitive grants to integrate education and workforce data

• $135M Career Pathways Innovation Fund (new)

– competitive grants to community colleges to develop/expand career pathway programs

DOL - $40B in ARRA

Federal Agency: DOTFY10 Budget = $73.3B FY09 Enacted =

$71.5B

• $3.5B Airport Improvement Program (AIP) (level)

• $175M Essential Air Service (EAS) program (+$52M)• $1B Capital Assistance High Speed Rail Corridors &

Intercity Passenger Rail Service (+$970M)• $36.1B Federal-Aid Highways** (-$4.7B)• $1.8B Transit Capital Investment grants ** (+$1.8B)• $1.5B Amtrak Subsidies (+$14M)• $5B National Infrastructure Bank (new)

DOT - $48.1B in ARRA

No funding: Small Community Air Service program, Rail Line Relocation Grant Program and Surface Transportation Priority earmarks

**Baseline numbers that do not take into account transportation authorization.

Federal Agency: EPAFY10 Budget = $10.5B FY09 Enacted = $7.6B

• $2.4B Clean Water SRF (+$1.7B); $1.5B Drinking Water DRF (+$671M)– Encourages efficient water delivery and green infrastructure– Will work with state and local partners to develop sustainability policy

• $19M Greenhouse Gas (GHG) emissions inventory (new)

– Supports developing energy and climate change plan– Supports strengthening climate partnership programs– Supports GHG Rule implementation and data reporting

• $106M Public Water Systems Supervision Grants (+$6.6M)

• $229.3M Water Pollution Control Grants (+$10.8M)

• $100M Brownfields Projects (+$3M)

• $1.8M Land Preservation and Restoration • $43.1M Environmental R&D

EPA - $7.22B in ARRA

Regional Commissions

• $76M Appalachian Regional Commission (ARC) (+$1M)

• $13M Delta Regional Authority (DRA) (level)

• $11.9M Denali Commission (+$165,000)

No funding: Northern Border, Southeast Crescent, Southwest Border or Northern Great Plains regional commissions.

Commissions - $50M in ARRA

How does this impact you?• Appropriations• Transportation Authorization –

SAFETEA-LU expires September 2009• Climate Change – Waxman-Markey bill• EDA Reauthorization• Livable Communities initiative• Water & Wastewater bill(s)

Important Local & Regional Discussions Continue…

Please Join Us!

National Association of Regional Councils202-986-1032 (T) • 202-986-1038 (F) • www.NARC.org

For more information, please contact:

Shannon MenardPolicy Manager

shannon@NARC.org, X 217