What States Should Know About the President’s FY 2015 Budget March 11, 2014 Federal Funds Information for States

It adheres to the discretionary spending caps set in the BBA The BBA amended the BCA for FYs 2014 and The Senate plans to work off these same levels, foregoing adoption of a FY 2015 budget resolution. The House plans to adopt a FY 2015 budget resolution, notwithstanding the fact that the BBA made it unnecessary. It is not known whether it will adhere to or reduce the BBA discretionary spending levels.

It repeals sequestration of mandatory programs included in the BCA ProgramFY 2014 ($ in 000’s) PB 2015 ($ in 000’s) Percent Change Voc. Rehab. State Grants $3,064,305$3,335,0748.8% Social Services Block Grant 1,577,6001,700,0007.8% Promoting Safe and Stable Families (mandatory) 320,160360, % Prevention and Public Health Fund 928,0001,000,0007.8% Community Health Centers (mandatory) 2,144,7163,600, % Highway Funding Exempt from Obligation Limitation 685,792739,0007.8% Other ACA mandatory programs that receive a direct appropriation in FY 2015

It proposes a “growth initiative” that would raise FY 2015 spending by $56B

It redirects the $612M TANF Contingency Fund TANF Contingency Fund set to expire 9/30/14 Extends fund, but redirects for other purposes – $602M for new Pathways to Jobs initiative Support work opportunities through subsidized employment for low-income parents and youth – $10M for technical assistance, research, and evaluation

It recycles many proposals from prior years ESEA reauthorization Early childhood initiative funded by tobacco taxes Consolidation of WIA Dislocated Worker and TAA into new program UI trust fund loan provisions FEMA grant restructuring Tax and bond proposals

It recycles many proposals from prior years Child support and fatherhood initiative – Variety of proposals to improve collections and increase program effectiveness; most funding occurs in future years Medicaid/CHIP – Extends Medicaid QI and TMA through CY 2015 – Extends CHIPRA performance bonuses; express lane eligibility – Extends Medicaid primary care payment increase, expands to mid-level providers – Program savings – Reduce waste, fraud, and abuse – Limit Medicaid reimbursement of durable medical equipment – Improve Medicaid drug rebate and payment policies

It includes a 4-year reauthorization of the highway program $302B over four years Reclassifies all surface transportation program grants as mandatory and exempt from sequestration Establishes Transportation Trust Fund – Highways account – Mass transit account – Multimodal account – Rail account Transfers $78B in general funds over four years Paid in part by unspecified corporate tax reform ($150B)

It addresses ACA issues, funding, and programs in various ways ProgramFY 2014 ($ in 000’s) PB 2015 ($ in 000’s) Percent Change Extends: Maternal, Infant, and Early Childhood Home Visiting $371,200$500, % Health Profession Opportunity Grants 78,88085,0007.8% Personal Responsibility Education Program 69,60075,0007.8% Aging and Disability Resource Centers 15,39920, % Does not extend: Abstinence Education 46, % Family-to-Family 2, %

It addresses ACA issues, funding, and programs in various ways ProgramFY 2014 ($ in 000’s) PB 2015 ($ in 000’s) Percent Change Reductions: Refugee Assistance – Transitional and Medical $391,477$383, % Access to Recovery 50, % Section 317 Immunizations 611,990560, % National Breast and Cervical Cancer Early Detection 207,269169, %

It level funds a large number of major grant programs, with exceptions listed ProgramFY 2014 ($ in 000’s) PB 2015 ($ in 000’s) Percent Change Child Care Development Fund (entitlement) $2,917,000$3,667, % Child Care Development Block Grant (new set-aside) 2,360,0002,417,0002.4% Foster Care Interventions (Foster Care and Medicaid) 0750,000100% Head Start 8,598,0958,868,3893.1% Race to the Top 250,000800, % Workforce Innovation Fund 47,30460, % WIC 6,716,0006,823,0001.6%

It level funds a large number of major grant programs, with exceptions listed ProgramFY 2014 ($ in 000’s) PB 2015 ($ in 000’s) Percent Change Public Housing Operating Fund $4,400,000$4,600,0004.5% Residential Substance Abuse Treatment for State Prisoners 10,00014, % Transportation Investments Generating Economic Recovery 600,0001,250, % Capital Investment Grants 1,942,9382,500, %

It level funds a large number of major grant programs, with exceptions listed ProgramFY 2014 ($ in 000’s) PB 2015 ($ in 000’s) Percent Change Improving Teacher Quality State Grants $2,394,830$2,000, % Impact Aid 1,288,6031,221, % UI State Administration 2,881,5752,855, % AML Grants to States 298,316186, % Low-Income Home Energy Assistance 3,424,5492,750, % Community Services Block Grant 674,000350, % Preventive Health Block Grant 160, % Racial and Ethnic Approaches to Community Health 50, %

It level funds a large number of major grant programs, with exceptions listed ProgramFY 2014 ($ in 000’s) PB 2015 ($ in 000’s) Percent Change Community Development Block Grants $3,030,000$2,800, % HOME Investment Partnerships Program 1,000,000950, % Clean Water SRF 1,448,8871,018, % Drinking Water SRF 906,896757, % State Criminal Alien Assistance Program 180, %

It transitions from formula grants to competitive grants New competitive grant proposals: – High School Redesign ($150M) – State Higher Education Performance Fund ($4B) – WIA Incentive Grants ($80M) – Sector Strategies ($15M) – Bridge-to-Work ($2B) – Back to Work Partnerships ($4B) – LIHEAP Energy Burden Reduction Grants ($50M) – Elder Justice Initiative/Adult Protective Services ($25M) – SAMHSA – Peer Professionals ($10M) – CDC/SAMHSA – prescription drug abuse/overdose ($25M)

It transitions from formula grants to competitive grants New competitive grant proposals: – Fixing and Accelerating Surface Transportation ($1B) – National Freight Infrastructure Program ($500M) – Juvenile Justice Realignment Incentive Grants ($10M) – Edward Byrne Memorial Incentive Grant ($15M) – Project Rebuild Competitive Portion ($5B)

It transitions from formula grants to competitive grants Competitive carve-outs of existing formula grants: – Improving Teacher Quality State Grants ($20M) – Special Education Part B Grants to States ($100M) – Career and Technical Education State Grants ($100M) – Hospital Preparedness Program ($15M) – Training Partnership Grants ($60M)

Most of it is DOA Smaller, noncontroversial proposals could be incorporated into various spending bills Legislative proposals or anything that would have to move through the reconciliation process (e.g., changes to mandatory programs or taxes) will not be addressed

What Next? House and Senate appropriations leadership vows an “aggressive” timetable: – Markups in May – Floor action over the summer – “Many” bills enacted by October 1

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