The Triple Crown: Looking at Federal, State and Local Budgeting This Session Sponsored by:

The Federal Budget & Ohio Sharon Parrott Center on Budget and Policy Priorities October 20, 2017

Federal Grants Make Up Nearly One-Third of State Budgets

The Vast Majority of Federal Fund Expenditures in Ohio Go Toward Medicaid

Federal Spending by Program, FY 2016 Entitlement spending includes programs like Social Security, Medicare, Medicaid, and SNAP (formerly known as food stamps). This part of the budget also includes the cost of civil service and military retirement, costs associated with the refundable part of tax credits like the Earned Income Tax Credit, and some smaller programs including foster care and child care funding. Medicare and Social Security together comprise 39% of the federal budget and nearly two-thirds of entitlement spending. The funding for discretionary programs is split almost evenly between defense and non-defense programs.

NDD Spending, FY 2016 NDD includes a wide variety of priorities such as education, scientific research, infrastructure, national parks and forests, environmental protection, some low-income assistance, and public health, as well as many basic government operations including law enforcement, courts, and tax collection.  It also includes many programs related to national security, including foreign aid, homeland security, and services for veterans.  Examples: Education and training: Title I aid for schools, IDEA for students with disabilities Law enforcement and governance: FBI Diplomacy and international affairs: USAID Health: CDC, NIH In 2016, NDD spending totaled $600 billion, or 16 percent of federal spending.  Of that total, 33 percent went to grants to states and localities, such as for K-12 education and highway projects, while 21 percent went to low-income programs, such as Head Start and rental assistance.

Standard Budget Process Or: How it is supposed to work President’s Budget Congressional Budget resolutions Appropriations, Entitlement and Tax Legislation Beginning of new fiscal year By first Monday in February By April 15 Summer/Fall October 1 Never happens this way, but it’s worth understanding the standard process to be able to understand how and why the process can deviate from the traditional route Planning for the next fiscal year; so in February 2017, Administration is planning for fiscal year 2018 President’s Budget: “This is what I think we should do for the next fiscal year”; down to the program level in specificity (e.g. SFWRF or Head Start recommendation) To Congress, it’s one big recommendation; it doesn’t have any legal status. This is not to say, necessarily that it lacks power. Plus, it can be very informative with costs BR is the polar opposite of the President’s Budget because it’s not nearly as detailed and carries more authority, such that it specifies the rules of the road The Appropriations Committees in both the House and Senate then take their roadmaps and draft appropriations bills. All approps bills rarely actually make it by October 1 Delayed in the 1st year of new administration Broad budget framework but doesn’t change tax or spending laws Appropriations bills set funding for discretionary programs

This Year’s Timetable for Budget/Tax Legislation Feb - Sep President released budget ACA repeal debate House budget committee crafted budget resolution Oct - Dec Budget resolutions considered on House/Senate floor Tax Bill Health package Discretionary funding/appropriations bills Jan - ? What gets held over?

The Triple Crown: Looking at Federal, State and Local Budgeting This Session Sponsored by: