the chaos in washington: impacts on regional councils southeast regional directors institute annual...
TRANSCRIPT
The Chaos In Washington: Impacts on Regional Councils
SouthEast Regional Directors InstituteAnnual Professional Development ConferenceMay 18, 2013
G
What’s Happened in Washington so Far?
President’s 2014 Budget Request: Highlights of key programs
Comparison of President's Budget request versus House and Senate Budgets
Update on the 2014 appropriations and budget process in Congress
Next Steps and 2014 Election Preview
Presentation
OVERVIEW
G
Jan 1: Fiscal Cliff deal reached, included tax increases for high income earners
March 1: Sequestration took effect, included $85 billion in spending cuts for 2013
March 21: Congress passed another FY2013 CR, which extends federal spending until September 30, 2013
March 21: House passed its FY2014 Budget Resolution
March 23: Senate passed its FY2014 Budget Resolution, first time in four years
April 10: President released his FY2014 Budget
What’s Happened
So Far?
Sequestration
G
• In effect starting March 1,
2013
• $85 billion in spending
cuts for 2013
• 7.1% defense spending
cuts
• 5% non-defense spending
cuts
Sequestration 2014
and Beyond
G
Released April 10…normally
in February
Proposes $3.78 trillion in
federal spending for 2014
House and Senate budgets
passed back in March
2013 Continuing Resolution
Continuing Resolution
Impact onEDA
Budget figures are in millions Final FY2010
Final FY2011
Final FY2012
Final FY2013 6
month CR
Economic Development Administration 293 283.43 457.5 224.8
Planning Grants 31 30.94 29 29 Global Climate Change Fund 25 16.47 0 0 Public Works 133.28 88.72 111.64 79 Economic Adjustment Grants 38.62 78.74 50.06 50.06Technical Assistance 9.8 13.37 12 12 Research & Evaluation 1.5 1.49 1.5 1.5 Trade Adjustment & Assistance 15.8 15.77 15.8 15.8 Regional Innovation Program n/a 0 0 0 Salaries and Expenses 38 37.92 37.5 37.5 Disaster Assistance n/a n/a 200 0
24% reduction in EDA funding since 2010.$168.5 million for grants & programs in 2013.
Continuing Resolution
Impact onEDA
• Congress passed a CR on March 21
• Extends federal spending until September 30, 2013
• EDA’s budget reduced from $257 million to $221 million
• EDA Public Works account reduced from $111 million to $79 million
President’s 2014
BUDGET
G
Released April 10…normally
in February
Proposes $3.78 trillion in
federal spending for 2014
House and Senate budgets
passed back in March
DHS-FEMA Emergency Management Performance Grants
HUD Self-Help Homeownership Opportunity Program (SHOP)
HHS Community Economic Development and Rural Community
Facilities Programs
HHS Rural Community Facilities Program
USDA Water and Waste Disposal (Guaranteed Loans)
USDA Rural Business Opportunity Grants (RBOG)* moves to
another program
USDA Rural Business Enterprise Grants (RBEG)*moves to
another program
USDA Rural Housing Preservation Grants
Major Eliminations
Major ReductionsUSDA Rural Electric Direct Loans
USDA Single Family Housing Direct Loans
HHS Community Services Block Grant Programs
EDA Public Works Program
EPA Clean and Safe Drinking Water SRFs
FEMA National Preparedness Grant Program
HHS Community Services Block Grants
Noteworthy Increases USDA Water and Waste Disposal Direct Loans
DOE Weatherization Assistance Grants
EDA Manufacturing and Export Initiatives
HUD Sustainable Communities Initiative
HUD Housing Trust Fund
HUD Homeless Assistance Grants
DOL Workforce Innovation Fund
USDA Community Facility Direct Loans
DOT High Speed Rail Program
DOT/FTA Capital Investment Grants
New Programs Proposed USDA Rural Business and Cooperative Grants: $55M
EDA Investing in Manufacturing Communities: $113M
NIST National Network for Manufacturing Innovation (NNMI): $1B
HUD Integrated Planning and Investment Strategy Grants: $75M
HUD Neighborhood Stabilization Initiative: $200M
DOT Highway Trust Fund: $1B
2014 EDA budget request: $320.9M
EDA’s current funding: $221M
Increase of $100M above FY13 enacted level ($221M)
Public Works account would be reduced to $45.5M
EDA FUNDING REQUESTS
EDA Program Breakdown (Numbers indicate program level in millions of dollars unless specified)
Final FY2012
Final FY2013
President's Request FY2014
% Change Final FY13 vs.
President's FY14 Request
Department of Commerce Economic Development Administration 257.50 221.00 320.90 45%
Economic Development Assistance Programs 220.00 185.50 282.00 52%
Planning Grants 29.00 29.00 27.00 -7%
Public Works 111.64 79.00 40.50 -49%
Economic Adjustment Assistance 50.06 50.06 76.00 52%
Grant Program for Small Businesses 1.00 1.00 0.00 -100%
Technical Assistance 12.00 12.00 12.00 0%
Research & Evaluation 1.50 1.50 1.00 -33%
Trade Adjustment Assistance for Firms 15.80 15.80 10.00 -37%
Regional Innovation Strategies 0.00 0.00 0.00 0%
Loan Guarantee (Program Authority) 70.00 70.00 140.00 100%
Loan Guarantee (Subsidy) 5.00 3.00 1.00 -67%
Disaster Assistance 200.00 0.00 0.00 0%
Investing in Manufacturing Communities-NEW 0.00 0.00 113.00 100%
Regional Export Challenge-NEW 0.00 0.00 12.00 100%
Salaries and Expenses 37.50 37.50 38.90 4%
EDA PROGRAM REQUESTS
Source: EDA FY2014 Budget Request Presentation
EDA PROGRAM REQUESTS
Source: EDA FY2014 Budget Request Presentation
Appalachian Regional
CommissionFUNDING
REQUESTS G(Numbers indicate program level in millions of dollars unless specified)
Final FY2012
Final FY2013
President's Request
FY2014 % Change
Final FY13 vs. President's
FY14 RequestAppalachian Regional Commission Non-Highway Program 68.26 65.00 65.00 0%
Appalachian Development Highway Systems (MAP-21) 470.00 470.00 470.00 0% Delta Regional Authority 11.67 12.00 11.30 -6%
Denali Commission 10.67 7.00 7.39 6% Northern Border Regional Commission 1.00 1.00 1.30 30% Southeast Crescent Regional Commission 0.25 0.25 0.00 -100%
USDA Rural Development
FUNDING REQUESTS
Requests $1.2B for USDA Rural Development Programs for 2014
Provides $23B in discretionary funding for USDA
Since 2009, USDA discretionary funding has decreased over $1B
HUD-CDBG PROGRAM REQUESTS
Requests $2.8B for CDBG Formula Grants, down from $3.3B last year
Provides $75M for Integrated Planning and Investment Strategy Grants (formerly Sustainable Communities Initiative)
Requests $2.3B for Homeless Assistance Grants
USDOTPROGRAM REQUESTS
Requests $77B for USDOT
Provides $40B for FHWA
Provides $8B for FTA’s Formula Bus Grants
Includes $146M for the Essential Air Service Program
USDOTPROGRAM REQUESTS
$820M for the Transportation Alternatives Program
$314M for Metropolitan Transportation Planning
$10.1B for the Surface Transportation Program
$29.9B for the National Highway Performance Program
House
BudgetResolution House Budget
Committee chair Rep. Paul Ryan, (R-WI).
• Passed the House on March 21
• Cuts the deficit by $5 trillion over 10 years
• $600 billion in new revenue from Fiscal Cliff deal reached in January 2013
Senate
BudgetResolution Senate Budget
Committee chair Sen. Patty Murray, (D-WA).• Passed the Senate on March 23
• First time the Senate has passed a budget in 4 years
• $1.85 trillion in deficit reduction over 10 years
• $975 billion in new revenue by eliminating tax breaks
President’s Budget vs.
House & Senate REQUESTS
G
Source: graph generated by CQ-Roll Call
Health Care costs are the primary driver of the debt.
CONGRESSNEXT STEPS
G
Most Members of Congress would like to get back to regular order
Unclear if all appropriation bills will pass before the beginning of FY2014 (October 1, 2013)
Congress could pass another CR for FY2014
Sequestration will happen again next year if there is no budget compromise
Congress will likely have to raise the debt ceiling this fall
CONGRESSNEXT STEPS
G
Other Issues to Watch
FarmBILL • 2008 Farm Bill extended until
Dec. 2013
• Reauthorization moving forward?
• USDA-Rural Development programs remain the same until Dec. 2013
• 2013 Farm Bill is being marked up in committees this week. Sen. bill includes $150 million in reauthorization funding for USDA-RD
SKILLSAct andWorkforce
House subcommittee on Higher Education and Workforce Training Chair. Virginia Foxx, (R-NC)• The SKILLS Act (H.R. 803) passed the House
on March 15
• Program consolidation from 48 to 14 workforce training programs
• Local funding designation would change
• Large federal block grants to states
• Senate is likely to take a different approach
2014 Mid- Term
Election Preview
G
Mid-term Congressional Elections: November 4, 2014
Mid-term elections usually favor party opposite the President
Key retirements
Early election forecast
2014 Mid- Term
Election Preview: Senate
G
Current Senate
Democrats: 55 *
Republicans: 45
*Includes 2 Independents
Sen. Reid (D-NV)
Majority Leader
Sen. McConnell (R-KY)
Minority Leader
2014 Mid- Term
Election Preview: Senate
G
Senate RetirementsSen. Rockefeller (D-WV)-open race is a toss up
Sen. Levin (D-MI)-open race leans Dem
Sen. Harkin (D-IA)-open race is a toss up
Sen. Baucus (D-MT)-open race is a toss up
Sen. Lautenberg (D-NJ)-open race leans Dem
Sen. Johnson (D-SD)-open race is a toss up
Sen. Chambliss (R-GA)-open race leans Rep
2014 Mid- Term
Election Preview: Senate
G
Vulnerable SenatorsSen. Pryor (D-AR)-leans Pryor
Sen. Hagan (D-NC)-leans Hagen
Sen. Landrieu (D-LA)-leans Landrieu
Sen. Graham (R-SC)-leans Graham
Sen. McConnell (R-KY)-leans McConnell
2014 Mid- Term
Election Preview: House
G
Current House
Republicans: 234
Democrats: 201
Rep. Boehner (R-OH)
Speaker of the House
Rep. Pelosi (D-CA) Minority
Leader
2014 Mid- Term
Election Preview: House
G
House RetirementsRep. Hanabusa (D-HI 1)-running for open Senate
Rep. Braley (D-IA 1)-running for open Senate seat
Rep. Peters (D-MI 14)-running for open Senate seat
Rep. Schwartz (D-PA 13)-running for Governor
Rep. Kingston (R-GA 1)-running for open Senate seat
Rep. Broun (R-GA 10)-running for open Senate seat
Rep. Cassidy (R-LA 6)-challenging Sen. Landrieu (D-LA)
Rep. Moore-Capito (R-WV 2)-running for open Senate seat
Key 2014 House Races
How can NADO help you?
G
NADO’s comprehensive budget report was released to members on April 23
NADO staff will continue to monitor and track 2014 appropriations bills
NADO Priorities
G
Activate EDA Coalition in support of increased funding
Join coalition partners in supporting full funding for rural development programs under the Farm Bill
Encourage Congressional partners to fund ARC at FY12 levels
Implementation of NADO priorities in MAP-21
QUESTIONS
G
2013 NADO Annual Training ConferenceAugust 24 – 27 |Hilton Union Square
San Francisco, CA