1. Public Policy Track: Budget and Appropriations
Categories of Federal Spending
FY 2020 Appropriations
Debt Ceiling
Mandatory Programs and Revenue
Prep for Hill Visits
Q & A

2. Categories of Federal Spending

3. Areas of Federal Spending
Discretionary Spending:
Defense
Non-Defense
Mandatory Spending – “Entitlements”
Interest on the Debt

4. Categories of Federal Spending
Definitions:
“Discretionary” programs are ones that Congress must set funding levels for each year through the appropriations process. 
Non-defense discretionary (NDD) programs comprise domestic and international programs outside of national defense.
Mandatory programs are government programs that guarantees certain benefits to a particular group or segment of the population. These programs remain in place until changed or require renewal only periodically. 

5. Federal Spending, FY 2017

6. Dollar Change from FY10 to FY19 (in FY19 $)1
FY 2010
FY10, in FY19 $1
FY 2018
FY 2019
Dollar Change from FY10 to FY19 (in FY19 $)1
Percent Change from FY10 to FY19
JOB TRAINING AND EMPLOYMENT SERVICES
Adult Training (WIOA)
861.5
1,010.9
845.6
-165.3
-16.3%
Youth Training (WIOA)
924.1
1,084.3
903.4
-180.9
-16.7%
Dislocated Worker Assistance
1,066.7
1,251.7
1,040.9
-210.8
-16.8%

7. FY’20 Appropriations; Debt Ceiling

8. NDD Programs Facing Significant Cut if No New Funding Deal is Reached
Past Budget Deals Have Provided Temporary Relief
Another Budget Deal is Needed for FY NDD to be cut by 9%
Payfors, partisan differences, & campaign promises are barriers to a deal

9. President’s FY 2020 Budget
Statement of Administration’s Priorities (NOT legislation) released in March. Addresses all spending and revenue.
FY 2020 again includes drastic cuts to numerous disability programs.
$2.7 trillion in cuts over 10 years, including cuts to Medicaid, the Affordable Care Act programs, and non-defense discretionary (NDD) programs.
NDD programs – which include education, employment, housing, transportation, and more – would be cut by $54 billion (9% from 2019 levels alone). Examples at right.

10. Status of FY 2020 Appropriations Bills
House began passing spending bills in June assuming a deal for increased caps
Senate has refused to develop spending bills until there is a deal
Disagreements between parties and with the White House on a deal about amounts, pay fors, parity with Defense, and tying to an increase in the debt ceiling
Bill
House
Senate
Labor-HHS-Education*
Passed
Defense
State-Foreign Operations
Energy and Water
Commerce, Science, Justice
Agriculture
Interior
Military Construction, Veterans Affairs
Transportation, Housing & Urban Dev*
Legislative Branch
Homeland Security
Financial Services
* Fund the vast majority of discretionary disability programs

11. House FY 2020 Appropriations
Passed by House of Representative in June.
Includes numerous increases for NDD programs. Examples at right.

12. Timeline of Major Events
Issue
Deadline
Potential New Cost
 Raise Debt Ceiling
Official: March 2, 2019 Must-act: Sept. or Oct.
N/A
Increased Defense/Non-Defense Discretionary (NDD) Caps
October 1, 2019
1-year: $125 B; 10 year: up to $1.7 T
Funding the Government / Appropriations for FY 2020
None if Congress abides by the budget caps
Continuing inflation adjustments over the next decade would cost $2 trillion through 2029 ($220 billion in 2029 alone).

13. Mandatory Spending; Revenue

14. Mandatory Spending Currently 64% of all spending
Amount of spending will grow because of baby boomers aging

15. Revenue: Where Does It Come From?
Main Sources of Income Are:
Personal Income Tax
Payroll Tax
Excise and other taxes
Corporate income tax

16. Individual Income Tax and Payroll Taxes
Individual and Payroll Taxes represent a growing percentage of revenue
Corporate income tax has shrunk dramatically since the 1950s
Excise, estate and other taxes have also shrunk as a percentage of revenue

17. Revenue and Spending
Tax cuts in 2001 and 2017 greatly decreased revenue
Discretionary spending has been significantly reduced as a percentage of GDP since 1995
Insufficient revenue creates pressure to cut spending

18. Mandatory Spending: Social Security and Medicare
Vital to people with disabilities when they are not able to perform self-supporting work
Medicare and Social Security are paid for through Federal Insurance Contribution Act (FICA) or payroll taxes
Social Security is financed entirely by payroll taxes; Medicare is a mix of payroll taxes and general federal revenue
Both are referred to as “social insurance”
Last time these social insurance premiums were increased was the late 1980s

19. Social Security Solvency: Action Needed
Social Security system can pay all scheduled old age, survivors, and disability benefits until 2035
Disability Insurance Trust Fund can pay all scheduled benefits until 2052
Two basic ways to ensure long-term solvency
Increasing Revenue or
Cutting benefits
Many different revenue options: increase FICA tax rate, raise or eliminate the cap on earnings subject to FICA tax, and tax other kinds of income besides wages

20. Social Security should be expanded
Social Security benefits are very modest and are not enough to lift many beneficiaries out of poverty
Current legislative activity centers on long-term solvency and making benefits more adequate – Such as the Social Security 2100 Act
Americans value Social Security and are willing to pay more to ensure its long- term solvency
More than 7 in 10 respondents to a National Academy of Social Insurance poll supported a solvency package that increases benefits by raising revenue with no benefit cuts
That is true regardless of income level, party affiliation, or education level

21. Mandatory Spending: Medicare
There are several parts to the Medicare program: Part A (hospital insurance); Part B (medical insurance); Part C (Medicare Advantage); Part D (prescription drugs)
Total Medicare spending was 15 percent of total federal spending in (projected to rise to 18 percent by 2028)
Medicare’s Hospital Insurance (HI) trust fund will remain solvent — that is, able to pay 100 percent of the costs of the hospital insurance coverage that Medicare provides — through 2026. 
Can fix by revenue increases or “controlling costs”
FICA taxes for Medicare have not been increased since 1986

22. Mandatory Spending: Medicaid
Medicaid provides health care and long-term services and supports to many autistic people and millions of other people with disabilities
Considered mandatory spending because spending is based on who is eligible for the program not based on an annual appropriation
Medicaid is funded entirely through general federal revenues
Has been under great pressure to cut spending on Medicaid
Per capita caps, block grants
Affordable Care Act repeal efforts

23. Prep for Hill Visits

24. Autism Society Talking Points
Strengthen, not weaken, vital entitlement programs such as Social Security, Medicaid, Medicare, SSI, Temporary Assistance for Needy Families (TANF), and SNAP (food stamps);
Promote cost-effectiveness when such efforts do no harm to our constituents and allow them to live as independently as possible in the community;
Eliminate or raise spending caps that impact discretionary programs that support people with disabilities and replace them with a budget that includes revenue increases and no further cuts to programs that support people with disabilities and their families;

25. Autism Society Talking Points (cont)
Address the significant unmet needs by expanding the federal government’s investment in people with disabilities to enable them to live and work as independently as possible in the community;
Ensure that eligibility for services and benefits is not restricted and that the level of services and benefits for entitlement programs (such as Medicaid, Medicare, and Social Security) is not reduced or limited to achieve budget cuts;
Reform tax policy in a manner that raises sufficient revenues to finance the federal government’s role in providing essential supports, services, and benefits for people with disabilities and their families over the lifespan.

26. Remember: You are the expert
No one knows better than you how important Federal programs are to you and your family
Tell your story:
Explain how services and supports help you live independently and in the community
Explain what cuts to the programs that provide the services and supports you need would mean to you and your family

27. Questions? Contact: Annie Acosta Richelle Friedman
Director of Fiscal and Family Support Policy Director of Public Policy
The Arc of the United States Coalition on Human Needs
(202) x 114
Lisa Ekman
Director of Government Affairs
NOSSCR