The Chaos In Washington: Impacts on Regional Councils SouthEast Regional Directors Institute Annual Professional Development Conference May 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 % 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 on EDA Budget figures are in millions Final FY2010 Final FY2011 Final FY2012 Final FY month CR Economic Development Administration Planning Grants Global Climate Change Fund Public Works Economic Adjustment Grants Technical Assistance Research & Evaluation Trade Adjustment & Assistance Regional Innovation Program n/a000 Salaries and Expenses Disaster Assistance n/a % reduction in EDA funding since $168.5 million for grants & programs in 2013.

Continuing Resolution Impact on EDA 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 Reductions  USDA 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 % Economic Development Assistance Programs % Planning Grants % Public Works % Economic Adjustment Assistance % Grant Program for Small Businesses % Technical Assistance % Research & Evaluation % Trade Adjustment Assistance for Firms % Regional Innovation Strategies0.00 0% Loan Guarantee (Program Authority) % Loan Guarantee (Subsidy) % Disaster Assistance % Investing in Manufacturing Communities-NEW % Regional Export Challenge-NEW % Salaries and Expenses %

EDA PROGRAM REQUESTS Source: EDA FY2014 Budget Request Presentation

EDA PROGRAM REQUESTS Source: EDA FY2014 Budget Request Presentation

Appalachian Regional Commission FUNDING 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 Request Appalachian Regional Commission Non-Highway Program % Appalachian Development Highway Systems (MAP-21) % Delta Regional Authority % Denali Commission % Northern Border Regional Commission % Southeast Crescent Regional Commission %

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

USDOT PROGRAM 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

USDOT PROGRAM 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 Budget Resolution 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 Budget Resolution 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.

CONGRESS NEXT 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

CONGRESS NEXT STEPS G

Other Issues to Watch

Farm BILL 2008 Farm Bill extended until Dec Reauthorization moving forward? USDA-Rural Development programs remain the same until Dec Farm Bill is being marked up in committees this week. Sen. bill includes $150 million in reauthorization funding for USDA-RD

SKILLS Act and Workforce 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 Retirements Sen. 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 Senators Sen. 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 Retirements Rep. 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 Conference August 24 – 27 |Hilton Union Square San Francisco, CA