Policy Updates April 2011

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Policy Updates April 2011

By Erik Peterson Posted: Apr 30, 2011

April 29, 2011

Congressional Budget Battles Part 2: FY2012

Last week we talked through the FY2011 final continuing resolution (CR), which funds the government until the end of the fiscal year in October. A week later, we still do not know the final spending numbers for 21^st CCLC and a number of other programs that were not itemized in the bill. Because this is a CR and not an appropriations measure, the Department of Education has great latitude in exactly how much of this funding is spent, though the Congress anticipates that they will follow the guidance that has been provided. The Department must submit a report to the Congress by May 18 detailing these decisions.

There is a degree of uncertainty over the FY2012 budget as well, but it is worth a look as Congress prepares to return from a two recess this coming Monday.

The House majority gave a clear indication of their priorities for the FY2012 budget in mid-April when they passed a partisan budget plan (H.Con.Res.34) sponsored by Budget Committee Chair Rep. Paul Ryan (R-Wis.) that would cut about $6 trillion in government spending over the next decade by reducing domestic discretionary spending to FY2008 levels and freezing funding at that level for five years. It also reduces corporate and individual tax rates and dramatically revamps both Medicaid and Medicare. The resolution passed the House by a strictly partisan vote of 235-193. All indications are that the House budget will have no support in the Democratically-controlled Senate, which is expected to release its own budget plan in May. The stark difference between the policy preferences of the Senate and the House, as it played out during FY2011 budget negotiations, suggests that both chambers will once again struggle to reach a compromise in a final FY2012 budget.

Because H.Con.Res.34 is a budget blueprint that does not carry the weight of an appropriations bill, few specific programs are mentioned in the resolution, however, Ryan’s budget plan would cut more than $13 billion, or 15 percent, below current levels for federal spending on education, training and social services. In response, staff for the Senate Appropriations Subcommittee on Labor, HHS and Education Chairman Tom Harkin (D-Iowa) released some estimates regarding the impact the House-passed budget resolution would have on select education programs in FY2012, including 21^st CCLC. According to an email from his office:

21^st Century Community Learning Centers:

The U.S. House budget could force a reduction of $175 million from programs that currently provide before-school, afterschool, and summer learning opportunities for elementary and secondary education students and offer a safe and productive place for such students when parents are still at work. This reduction could result in the loss of these opportunities for more than 175,000 students across the United States.

Title I Grants:
Title I education funding could be cut by $2.1 billion nationally, meaning 7,500 schools serving 3.1 million disadvantaged students could lose funding, and approximately 30,000 teachers and aides could lose their jobs.

Special Education:

The U.S. House budget could result in a significant reduction of $1.7 billion in federal special education funding. This reduction could lead to the loss of 21,000 education staff serving such students.

As indicated above, the Senate is expected to reject this proposal; however momentum continues to mount for Congress and the Administration to take action to address the deficit. On April 13, just days before the House passed H.Con.Res.34, the President announced his framework for addressing the long-term budget deficit. The Obama plan would generate $4 trillion in budget savings over 12 years through a variety of means, including cutting non-security discretionary spending by $770 billion. This would affect all federal programs other than defense and entitlements, including education programs like 21^st CCLC.

The day he announced this budget framework, President Obama also announced the creation of a bipartisan task force led by Vice President Joe Biden to negotiate a long term budget deal. The commission, which is meeting on May 5, includes such Congressional appointees as Sens. Max Baucus (D-Mont.), Daniel Inouye (D-Hawaii) and Jon Kyl (R-Ariz.) and Reps. Chris Van Hollen (D-Md.), James Clyburn (D-S.C.), and Eric Cantor (R-Va.). There are several other bipartisan groups also devising budget plans, including the so-called “Gang of Six,” which includes Sens. Kent Conrad (D-N.D.), Mark Warner (D-Va.), Richard Durbin (D-Ill.), Tom Coburn (R-Okla.), Saxby Chambliss (R-Ga.) and Mike Crapo (R-Idaho). This week, the Progressive Caucus, a group of progressive Democrats led by Reps. Raul Grijalva (Ariz.) and Keith Ellison (Minn.) produced a budget that would actually increase funding for domestic priorities, including education, healthcare, job training and social services.

Look for the FY2012 budget debate as well as debate over raising the debt ceiling to continue to dominate headlines through the month of May. Friends and supporters of afterschool programs can make their voices heard by attending the Afterschool for All Challenge on May 16-17 in Washington, D.C., and by contacting their Members of Congress using our revised action alert available on our website.

April 21, 2011

Making Sense of the Spending Battles in Congress, Part 1

It took seven continuing resolutions in as many months for Congress to reach an agreement on a spending bill for the current fiscal year, yet the funding levels for a number of federal programs are still not entirely known. How did we get here and what is in store for the future?

In a typical calendar year, the appropriations process more or less follows this path:

Winter: The President releases his proposed budget and House and Senate Budget Committees debate and eventually pass budget resolutions that serve as a “blueprint” for federal funding.

Spring and summer: House and Senate Appropriations Subcommittees and full Committees pass thirteen individual spending bills that fund federal agencies and programs for the upcoming fiscal year that starts on October 1.

Last year that did not happen. The House and Senate never passed a budget resolution nor individual spending bills. An attempt was made last December to pass a comprehensive omnibus spending bill, but that too failed to occur. The result was a series of seven short-term continuing resolutions enacted from late September last year through earlier this month, several of which included spending reductions.

The FY2011 appropriations process concluded last week with both chambers of Congress passing a final continuing resolution which funds the federal government through September 30, 2011. The president signed the bill last Friday, reducing federal spending by $38.5 billion from FY2010 spending levels. The final FY2011 spending bill represents a compromise between the House majority, the Senate majority and the president as an attempt to find middle ground between large spending cuts proposed in the House and those proposed in the Senate.

In the context of what the president called a historic spending cut, federal funding for afterschool fared relatively well. Overall, the bill reduced federal spending on Labor, Health and Human Services and Education programs by $5.7 billion. Funding for all non-defense programs was reduced across the board by 0.2%. The 21^st Century Community Learning Centers initiative, the only federal funding stream that exclusively supports before school, afterschool and summer learning programs, was not mentioned by name in the FY2011 spending bill. As a result, the Department of Education will have 30 days to inform Congress of the amount to be spent on this and a number of other Education programs that were also not detailed in the bill. There was reportedly an informal recommendation from the House and Senate Appropriations Committees that funding for the 21^st CCLC initiative be reduced by $10 million in addition to the 0.2% cut, resulting in a funding reduction of approximately $12.3 million. Confirmation of this reported cut has not been verified. In fact, on April 16, Michael Robbins, senior advisor for nonprofit partnerships at the Department of Education addressed attendees of the annual National Afterschool Association convention, stating that federal funding for afterschool programs was level-funded in the FY2011 spending bill. While this suggests the Department will not cut 21st CCLC funding, given the mixed signals, final confirmation of the FY2011 spending level for 21^st CCLC is anxiously awaited.

Some programs were mentioned by name in the FY2011 spending bill, therefore more is known about funding levels for these programs. The discretionary side of the Child Care Development Fund, another key funding source for afterschool programs as it includes funding for school-age childcare, will be funded at approximately $2.2227 billion, a $100 million increase over FY2010 levels.

Several other sources of afterschool funding were substantially reduced. Note that the following reductions are in addition to the 0.2% across-the-board spending cut:

GEAR UP (Education) reduced by $20 million - estimated
TRIO (Education) reduced by $25 million - estimated
Promise Neighborhoods increased by $20 million to $30 million
Americorps (Corporation for National and Community Service, CNCS) reduced by $23 million
Learn and Serve (CNCS) program eliminated
Community Development Block Grant (Housing and Urban Development) reduced by $43 million
Weed and Seed (Justice) program eliminated
Juvenile Justice (Justice) reduced by $148 million
YouthBuild (Labor) reduced by $23 million
Arts Education (National Endowment of the Arts) reduced by $13 million
NASA Education (NASA) reduced by $38 million
Education and Human Resources (National Science Foundation) reduced by $10 million

A summary of the bill from the Senate Appropriations Committee is available here.

A summary of bill from the House Appropriation Committee is available here.

Complete bill text of HR 1473 can be found here.

A broader explanation of cuts to the Department of Education budget as posted by Education Week can be found here.

A discussion of cuts to youth program funding from Youth Today can be found here.

Come back next week for part 2 of our look at the budget battles in Congress, when we will tackle the FY2012 budget and appropriations process.

April 15, 2011

FY2011 Spending Bill Passes House and Senate; FY2012 Budget Resolution Passes House

Over seven months after the start of the fiscal year, both the Senate and House passed the FY2011 spending bill in bipartisan votes on the afternoon of April 14th. The President is expected to sign the bill into law April 15th. An explanation of the impact of the legislation on federal afterschool funding can be read under the April 12th post below. Because the final FY2011 funding level for the 21st CCLC program was not specified in the spending bill language, the Department of Education will have thirty days to inform Congress of the amount to be spent on this and a number of other Education programs that were also not detailed in the bill.

UPDATE: On April 16th, Michael Robbins, Senior Advisor for Nonprofit Partnerships at the Department of Education addressed the annual conference of the National Afterschool Association. He stated that federal funding for afterschool programs was level-funded in the FY2011 spending bill, suggesting the Department will not cut 21st CCLC funding. More information on this is expected in the coming days.

The House of Representatives also passed an FY2012 budget resolution this afternoon. The resolution serves as a blueprint for federal spending. The Senate has indicated they will pass their own FY2012 budget resolution. The House and Senate adjourn today for a two week recess - providing an opportunity for afterschool providers to reach to Members of Congress and invite them to visit afterschool programs. Learn more here.

April 13, 2011

House to Vote on FY2012 Budget Plan this Week

With the FY2011 spending bill apparently in the final stages of becoming law later this week, the House has announced plans to vote on an FY2012 budget resolution this week. Earlier this month the House Budget Committee revealed its budget proposal for FY2012, which will begin in October. The budget proposal is the House majority’s guide for funding federal programs for FY2012. If agreed to by the House and the Senate, it would be used as a budget blueprint for next year—setting targets for overall spending, deficit reduction and revenue collection. Should it become law, the budget resolution would set the levels of funding for federal programs under the jurisdiction of the Appropriations Committees in both chambers of Congress.

The House budget resolution proposes large cuts in discretionary spending over several years. Overall, the proposed resolution cuts $6.2 trillion in government spending over the next ten years compared to the president’s FY2012 proposed budget. The resolution also eliminates hundreds of programs, continues the ban on earmarks and aims to bring non-security discretionary spending to below FY2008 levels—necessarily resulting in drastic cuts to afterschool funding as well as other categories of spending from health care to education and juvenile justice. The House Budget Committee passed the proposal 22-16 on April 6. The full House is expected to vote on the proposal by this Friday. Access the House budget proposal here.

Reach out to your Members of Congress about the FY2012 and FY2011 budget and spending bills this week to urge their continued support for afterschool programs.

April 12, 2011

Details of FY2011 Spending Bill Released

Early Tuesday morning the details of the final FY2011 spending bill were released. HR 1473, the Department of Defense and Full-Year Continuing Appropriations Act of 2011, funds the federal government through September 30, 2011. The bill cuts $38.5 billion in spending compared to FY2010 levels, including a cut of $5.7 billion to Labor, Health and Human Services and Education agencies. Funding for all non-defense programs was reduced across the board by .2%. Both the House and Senate are expected to pass the bill later this week.

The 21^st Century Community Learning Centers initiative, the only federal funding stream that exclusively supports before school, afterschool and summer learning programs, was not mentioned by name in the FY2011 spending bill. However, it is believed at this point that the House and Senate Appropriations Committee is recommending that funding for the program be reduced by $10 million in addition to the .2% cut, resulting in a funding reduction of approximately $12.3 million. Confirmation of this reported cut is pending as the Department of Education will make final determinations on spending levels for programs not mentioned by name in the bill.

A second key funding stream supporting afterschool programs, the discretionary side of the Child Care Development Block Grant which includes funding for school-age childcare, will be funded at approximately $2.2227 billion, a $100 million increase over FY2010 levels.

The cut to 21^st CCLC is painful and could result in more than 12,000 children losing their afterschool programs. However, we recognize that these are tough times and that our bipartisan allies in Congress held firm in protecting the program from deeper cuts. A special note of thanks goes to all Members of Congress who championed these programs, as well as the thousands of friends of afterschool programs who contacted their Members of Congress urging support for these critical initiatives that inspire learning, keep children safe and help working families.

Several other sources of afterschool funding were substantially reduced. Note that the following reductions are in addition to the .2% across-the-board spending cut:

GEAR UP (Education) reduced by $20 million - estimated

TRIO (Education) reduced by $25 million - estimated

Promise Neighborhoods increased by $20 million to $30 million

Americorps (CNCS) reduced by $23 million

Learn and Serve (CNCS) program eliminated

Community Development Block Grant Programs (HUD) reduced by $43 million

Weed and Seed (Justice) program eliminated

Juvenile Justice (Justice) reduced by $148 million

YouthBuild (Labor) reduced by $23 million

Arts Education (NEA) reduced by $13 million

NASA Education (NASA) reduced by $38 million

Education and Human Resources (NSF) reduced by $10 million

A table showing the impact of the $12.3 million cut to the 21^st Century Community Learning Centers initiative on each state can be found here.

A summary of the bill from the Senate Appropriations Committee is available here.

A summary of bill from the House Appropriation Committee is available here.

Complete bill text of HR 1473 can be found here.

A broader explanation of cuts to the Department of Education budget as posted by Education Week can be found here.

April 9, 2011

FY2011 Budget Deal Struck, Government Shutdown Averted

Friday night, in the eleventh hour, the House and Senate informally agreed on a FY2011 budget that includes $38.5 billion in additional spending cuts and averted a government shutdown through Friday, April 15. Both bodies of Congress passed a one week Continuing Resolution that includes $2 billion in spending reductions. President Obama signed the provision into law to keep the federal government running long enough for congressional leaders to put the finishing touches on the long-term budget compromise that will keep the federal government funded for the remainder of the 2011 fiscal year. Specifics of the budget deal are not known at this time and reports indicate that many program level funding reductions are still being negotiated prior to introduction of the FY2011 spending bill, expected to occur late Monday evening.

The one week Continuing Resolution passed Friday night mainly cuts Transportation and Housing programs including reducing funding for the Department of Housing and Urban Development’s Community Development Fund.

It is not yet known if, or by how much, a cut to the 21^st CCLC program will be included in the final funding measure, nor whether the spending bill includes cuts to the Child Care Development Fund, the Corporation for National Community Service, the National Science Foundation, or other sources of federal support for afterschool programs. In a blog post on April 9^th, White House Communications Director Dan Pfeiffer provided a broad description of the budget deal, writing:

The two sides agreed to cut $13 billion from funding for programs at the Departments of Labor, Education, and Health and Human Services as well as over $1 billion in a cut across non-defense agencies, forcing everyone to tighten their belt. There will be reductions to housing assistance programs and some health care programs along with $8 billion in cuts to our budget for State and Foreign Operations. These significant cuts to the State Department and foreign assistance will mean we will not meet some of the ambitious goals set for the nation in the President’s Budget…

In addition to these cuts, we were able to eliminate $30 million for a job training program that was narrowly targeted at certain student loan processors. We also looked to the Defense department for savings, and were able to identify $18 billion in cuts deemed unnecessary by the Pentagon. These types of cuts are what the American people expect out of their leaders in Washington.

We protected funding for critical programs that invest in science programs, our kids’ education, and critical health programs. We are maintaining current levels of Head Start enrollment, funding Race to the Top, including an early learning element, and have sufficient savings available to maintain the Pell Grant maximum award and the broad education reform agenda, including K-12 education. There is still robust investment to efficiently and effectively run Medicare and to implement the Affordable Care Act. Even though we will no longer double the funding of key research and development agencies, you will still see strong investments in National Institute of Standards and Technology, National Science Foundation and the Office of Science.

April 8, 2011

Talks Continue on FY2011 Spending, But Government Shutdown Looms

After multiple high level meetings this week, there appears to be no agreement between the House and Senate on an FY2011 spending bill just twelve hours before the April 8 midnight deadline when the sixth Continuing Resolution (CR) expires. Congressional Republican and Democratic leaders met twice on April 7 and at least once today to find a compromise between $33 billion and $40 billion in cuts for the remainder of FY2011. The House did pass a one week CR earlier this week however Senate leadership and the president have indicated that policy provisions relating to abortion would prevent them from agreeing to the CR. If either a CR or a long term FY2011 spending agreement is not reached today, a government shutdown would take place, including a furlough of over 4,000 Department of Education employees. Assuming the shutdown will be short-lived, there should not be a large impact on most 21^st CCLC programs as this year’s federal funds have already been distributed to states. Updates on the FY2011 will be posted as they become available.

April 5, 2012

House Budget Committee to Mark-up FY2012 Budget Resolution

House Budget Committee Chairman Paul Ryan released the House majority’s FY2012 budget resolution today with plans to mark up the bill in Committee this week. Details on specific program funding reductions are scarce however according to Budget Committee’s website the proposal does the following:

Cuts $6.2 trillion in government spending over the next decade compared to the president’s budget, and $5.8 trillion relative to the current policy baseline
Eliminates hundreds of programs, reflects the ban on earmarks and curbs corporate welfare
Brings non-security discretionary spending to below 2008 levels
Brings government spending to below 20 percent of the economy

Education, job training and employment spending set at $67 billion for FY2012 and represents a cut of $250 billion over ten years. Because education alone is not broken out it is difficult to make a comparison to FY2010 levels. As more details emerge they will be posted on Policy News.

April 4, 2012

FY2011 Appropriations Deadline Draws Close

Unless Congress reaches an agreement on an FY2011 spending bill or passes a seventh Continuing Resolution (CR) this week, the government faces a shutdown when the current CR expires this Friday, April 8. Media reports indicate that negotiations continue on a permanent funding bill through end of the 2011 fiscal year with House and Senate leadership meeting with the White House this week on a possible compromise that would cut $33 billion in federal spending. Program-level specifics of what those spending reductions would entail have yet to be released.

At the same time, House Appropriations Chairman Hal Rogers today introduced another temporary funding measure—CR number seven—to prevent a government shutdown for an additional week while cutting a total of $12 billion in discretionary spending. The measure also includes funding for the Department of Defense for the remainder of the current fiscal year. The $12 billion in cuts contained in this legislation include funding rescissions, reductions and program terminations. All of the proposed cuts were also included in HR1 and many were included in the president’s budget requests or the Senate’s alternative to HR 1. Among the reductions is a $119 million cut to the “Teaching American History” program funding. A full summary of the cuts in this seventh CR can be found here.

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