Transcript Federal Sequestration: Impact on California Cities

Federal Sequestration
Understanding Impacts to Your City &
How to Take Action
October 10, 2012
League of California Cities Federal Briefing
Federal Sequestration: Impact on
California Cities
1. Federal Sequestration Summary and
Projected Impacts
2. Advocacy Efforts Underway on the
Sequester
3. What You Can Do to Help
League of California Cities Federal Briefing
How to Ask A Question
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League of California Cities Federal Briefing
League Legislative Advocates
Dorothy Holzem
Associate Legislative Representative
Dustin McDonald
League of California Cities Federal Advocate
League of California Cities Federal Briefing
Federal
FYSequestration
2013 Appropriations
Background
• August 2011 – Congress approves the Budget Control Act
 Set automatic spending caps on federal programs
 Created the Joint Select Committee on Deficit Reduction (Super
Committee)
• Super Committee failure results in federal sequestration
 $1.2 trillion in across-the-board cuts to federal programs through
2021.
 50% of cuts to come from non-defense discretionary programs.
 50% of cuts to come from defense programs.
League of California Cities Federal Briefing
Impacted Programs
• Sequestration would impose cuts to federal programs that benefit
local governments in FY 2013:
Program
Projected Cut
 Community Development Block Grant (CDBG)
8.4%
 HOME Investment Partnership
8.4%
 COPS
8.2%
 Byrne Justice Assistance Grants
8.2%
 Clean Water State Revolving Loan Fund (CWSRF)
8.4%
 Water Infrastructure Funding (Army Corps of Engineers)
8.2%
• Sequestration would reduce funding for these programs by an
estimated 28% between FY 2013 and FY 2021.
League of California Cities Federal Briefing
Additional Impacts
 $739 million in highway and road funding is vulnerable
to federal sequestration
 National Defense Programs – California stands to lose
$2 billion in defense contract revenue
135,000 private-sector jobs and $11.7 billion in
gross state product (GSP)
League of California Cities Federal Briefing
Status of Sequester
• Congress will renew debate on
reorganizing the sequester in
November.
• Six week legislative session to
make revisions to the sequester
will begin on November 12.
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Advocacy on the Sequester
• Strong and ongoing advocacy
effort underway on avoiding
defense cuts.
• Nascent effort to protect local
programs.
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Key Points
• Deficit reduction should not shift costs to local governments.
 83.7 percent of the nation's population resides in metropolitan areas.
 Metro areas have been responsible for nearly 88 percent of the recovery in the
nation's real GNP and over 83 percent of employment growth to date.
• Non-defense discretionary (NDD) programs are successful and
productive, leveraging significant funding from non-federal
sources to help spur economic recovery.
• Achieving deficit reduction cannot be done solely through cuts
to local government programs.
 NDD programs are account for less than 1/5 of the total federal budget.
 90% of federal deficit reduction over the last two years has focused cutting NDD spending.
 Even if discretionary spending were reduced by 100 percent, the federal government would
still face a $500 billion annual deficit.
League of California Cities Federal Briefing
What Can You Do?
• This is a critical time for cities to weigh in with your
members of Congress and Senators.
• Urge California’s 53 members of Congress and 2 Senators
to hold the line on funding for our priority programs to
sustain national economic growth.
• We need the help of all of California’s cities to convey this
message through:

Direct contact

Letters

Op-Eds
League of California Cities Federal Briefing
Focus on Program Benefits
• Describe how funding from these
programs has helped your city:
 Increase or retain jobs
 Leverage private or state funding
 Help small businesses
 Support local economic expansion
 Be specific
League of California Cities Federal Briefing
Focus on Economic Impacts
• Describe how additional cuts to these programs
would impact your city:
 Local infrastructure projects delayed or eliminated
 Local social service projects reduced or eliminated
 Employee layoffs
 Support to small businesses
League of California Cities Federal Briefing
Be Prepared for the Discussion
• Refer your members of Congress to leading bipartisan
studies on deficit reduction that contain
recommendations.
• Reiterate the message that local programs have already
been cut severely over the past two federal fiscal years
and negative economic impacts have resulted.
League of California Cities Federal Briefing
Start Today!!!
• Members of Congress are
home in their districts
campaigning through election
day November 6.
 Talk to them.
 Write them.
 Pass resolutions and share them.
 Publish Op-Eds.
League of California Cities Federal Briefing
Questions?
League of California Cities Federal Briefing
League Resources
• To access additional information on this
material or the advocacy resources discussed
on this webinar, visit
www.cacities.org/sequestration or contact
League staff at [email protected].
League of California Cities Federal Briefing