1. Federal Budget & Early Childhood Education Briefing NAEYC March 8, 2011

2. Federal Dollars & Early Childhood Federal funds account for 75-80% of public dollars spent on 0-5, and are a significant part of K-12 and higher education Major federal programs – Child Care & Development Block Grant (CCDBG) funds to states for family assistance, licensing, prof dev, qris, resource & referral – Head Start & Early Head Start grants for comprehensive programs – IDEA Part C and 619 – special education/early intervention – TANF – formerly known as welfare, can be transferred to CCDBG at state level or direct child care assistance – Pell Grants provide scholarships for higher education – Title I of ESEA/NCLB helps equalize education and can be used for birth through high school

3. Budget Areas Defense and security = 20% of the budget Social security = 20% of the budget Medicare, Medicaid, CHIP = 21% of the budget Other safety net = 14% of the budget Interest on the national debt = 6% Veterans, research, transportation, education, international aid (nonsecurity), other = 19% Source: Congressional Budget Office 2010

4. ARRA/stimulus Fiscal crisis for states and localities as well as rising individual fiscal concerns (high unemployment, home foreclosures) creates ARRA for a two-year period – CCDBG $2 billion – Head Start/Early Head Start $2.1 billion – IDEA, Title I, Pell and many other programs receiving large ARRA increases

5. Without ARRA – Lose 300,000 Children from Child Care, Head Start and Early Head Start ARRA funds do not become the new “baseline” States use CCDBG to reduce waiting lists, increase quality initiatives – even with ARRA, wait lists are now growing, concern of having to limit quality initiatives Head Start and Early Head Start open classrooms with additional children and new staff, improve quality – threat of closing classrooms

6. Current Situation: Continuing Resolutions & Shutdown Threats 111 th Congress failed to finish most appropriations bills for FY 2012 (October 1 2010 – September 30 2011) Continuing Resolutions – can be unlimited in time and in number Current CR ends March 18 Failure to pass a CR leads to federal government shutdown (and federal spending shutdown)

7. HR 1 Current debate is cutting spending on nondefense, nonsecurity domestic discretionary spending HR 1 cuts $61 billion from programs, no revenue raising -- includes – Head Start $1 billion cut – CCDBG $39 million cut – Title I $693 million cut – IDEA $557 million cut

8. If enact HR 1 -- 368,000 currently served children will lose child care, Head Start and Early Head Start New baseline for CCDBG and Head Start and other programs re-set by HR 1

9. This Week in the Senate HR 1 has passed – now it’s the Senate’s turn Senate will take up HR 1 this week Senate Democratic Leadership alternative Both will need 60 votes Call Your 2 Senators: VOTE NO on HR 1

10. Next Steps Could be more short term CRs – have your colleagues sign up for Children’s Champions (do not need to be a NAEYC member) Collecting stories – advocacy@naeyc.org – examples:advocacy@naeyc.org – Families using subsidies to get quality care otherwise unaffordable – Teachers receiving TEACH scholarships – Waiting lists in programs for Head Start, Early Head Start