The Chaos In Washington: Impacts on Regional Councils

SouthEast Regional Directors InstituteAnnual Professional Development ConferenceMay 18, 2013

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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

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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

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• 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

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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

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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

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Source: graph generated by CQ-Roll Call

Health Care costs are the primary driver of the debt.

CONGRESSNEXT STEPS

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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

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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

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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

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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

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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

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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

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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

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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?

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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

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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

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2013 NADO Annual Training ConferenceAugust 24 – 27 |Hilton Union Square

San Francisco, CA