Transcript Slide 1
Federal Funding 101 Noelle Ellerson Federal Funding Timelines matter! Education budgets are influenced by federal, state and local timelines, none of which line up Federal budget year starts Oct 1 We are in federal fiscal year 2013 (Oct 1 2012-Sept 30 2013) FY13 dollars will be in your school in the 2013-14 school year Federal Funding: Two Processes Budget Sets overall spending for the government Determines the size of the ‘pie’ Establishes policy priorities Budget resolutions are nonbinding Appropriations Sets spending levels for agencies and programs Education funding is in the LHHS-Edu appropriation bill FY12 Funding ‘Pie’ Education 2% Medicaid 7% Other Mandatory 13% Medicare 15% Interest 6% Defense 19% Social Security 22% Nondefense discretionary (other than education) 16% How’d We Get Here? Budget Control Act of 2011 Part of debate to raise debt ceiling Established requirement to save $1.2 trillion over ten years; failure to reach agreement for blended approach via Super Committee would trigger sequestration Sequestration was triggered January 1, 2012 and took effect March 1 2013 It established ten years of budget caps that set the overall spending ‘pie’ for ten years Budget Control Act BCA set in law discretionary caps for ten years (FY 12-FY 21). Reduced spending by $900 billion over ten years. Supercommittee failure triggered sequestration. $1.2 trillion in automatic cuts between FY 13-21; 50% from defense, 50% from nondefense Impact of FY13 Sequestration on Education In millions $0 -$65 -$87 -$124 -$86 -$129 -$401 -$500 -$620 -$727 -$1,000 -$1,500 -$2,000 -$2,500 -$2,478 Total Dep't. of ED Title I Impact Aid Teacher Quality IDEA Grants Career, Tech, Adult Student Aid Higher Ed Head Start USED Funding Levels Nondefense Discretionary Funding Caps $700 Budget Authority in Billions $600 $500 $400 $300 $200 $100 $0 FY 12 FY 13 FY 14 FY 15 CBO Pre BCA Baseline FY 16 BCA Caps FY 17 FY 18 Sequestration FY 19 FY 20 Murray FY 14 FY 21 FY 22 FY 23 Ryan FY 14 Sources: CEF Calculations based on An Update to the Economic and Budget Outlook: Fiscal Years 2013 to 2023, CBO, February 2013; OMB Report Pursuant To The Sequestration Transparency Act Of 2012, September 2012; the American Taxpayer Relief Act of 2012, January 2013; House Budget Committee’s Fiscal Year 2014 Budget Resolution Discretionary Spending table and Senate Budget Committee’s FY 2014 Budget Resolution Discretionary Spending Ryan Budget Cuts Nondefense Discretionary Funding Below Sequestration Budget Authority in Billions $700 $650 $600 $550 $500 $450 $400 FY 12 FY 13 FY 14 CBO Pre BCA Baseline FY 15 FY 16 BCA Caps FY 17 FY 18 Sequestration FY 19 FY 20 Murray FY 14 FY 21 FY 22 FY 23 Ryan FY 14 Sources: CEF Calculations based on An Update to the Economic and Budget Outlook: Fiscal Years 2013 to 2023, CBO, February 2013; OMB Report Pursuant To The Sequestration Transparency Act Of 2012, September 2012; the American Taxpayer Relief Act of 2012, January 2013; House Budget Committee’s Fiscal Year 2014 Budget Resolution Discretionary Spending table and Senate Budget Committee’s FY 2014 Budget Resolution Discretionary Spending Summary Function 500 Funding 13 Ryan 10-year total = $906 billion; Murray 10-year total = $1,130 billion US Map: Federal Revenue in Local Edu Budgets Funding Sequestration It happened! 5.1% Across the board, all K-12 programs, will impact you in 2013-14 school year IMPACT AID is immediate Role of Sequester in pulling the level on flexibility re: IDEA MoE Still not resolved, still opportunity to get it ‘fixed’. Funding: FY14 House and Senate each passed budget resolutions. Drastically different; we are likely on course for another CR House Maintains sequestration Funding levels for education are, at best, slightly worse than sequestration Significant reliance on discretionary spending cuts Senate Resolves sequestration, though there would still be cuts to discretionary spending Maintains investment in education Includes$20 million for school infrastructure FY14: President’s Request Dead on arrival (or, even more so than usual!) Once again highlights education as a funding priority Once again pushes all new dollars in to competitive programs $1.2 billion in new funding goes to competition. Level funds Title I and IDEA, along with almost all other programs. FY14 President’s Budget Request New money in: STEM School Safety i3 and RttT Charter Schools, Magnet Schools and High School redesign Promise Neighborhoods 21st Century Questionable assumptions Resolves sequester ESEA reauthorization NO funding for education technology Impact Aid CUT $66 million Questions? Noelle Ellerson [email protected] @Noellerson The Leading Edge Blog: www.aasa.org/aasablog.aspx