Transcript Building Strong Watersheds Together

Budgets and Appropriations:
Restoring our Infrastructure
National Waterways
Conference
BUILDING STRONG
Gary A. Loew
Headquarters, U.S. Army Corps of Engineers
March 11, 2009
Winter Leader Conference
February 4, 2009
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1
Budgets and Appropriations
( $ Millions )
Investigations
Construction
Operation & Maintenance
Mississippi River &
Tributaries
Regulatory
Flood & Coastal
Emergencies
F.U.S.R.A.P.
Expenses
ASA(CW)
Sub - Total
Supplemental Approps
Stimulus Bill
Total
FY08
Execution
FY08
Budget
FY08
Approp
FY09
FY09
Budget Conference
156
2,221
1,971
90
1,523
2,471
167
2,294
2,244
91
1,402
2,475
168
2,140
2,202
385
260
387
240
384
158
180
180
180
183
953
40
0
40
40
139
168
4
6,155
130
177
0
4,871
3,383
140
175
5
5,592
3,383
130
177
6
4,741
5,761
6,155
8,254
140
179
4.5
5,401
5,761
4,600
8,975 10,502 15,694
* No FY09 Energy & Water Development Appropriation has been passed. We are operating at FY08 levels under a Continuing Resolution
Authority until Mar 09.
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Civil Works Business Programs
in FY2009 Budget & Supplemental
Environmental Protection
& Restoration
Flood & Coastal
Storm Damage
Reduction
Navigation
$1,892 M
Hydropower
$7,083 M
Emergency
Management
$319 M
Regulatory
Recreation
$270 M
$58 M
Support for Others
Water Supply
$180 M
$6 M
Figures from FY09 Budget + Supplemental. Total = $9.475 M
(includes $183 M Management & Oversight not listed in pictures)
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$511 M
“ Building Strong “
$2,400 M**
** Estimated reimbursement from
supported agencies, not in budget
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Civil Works Program Trends
FY06 – 13
20
Stimulus Package
18
Tot SFO
16
Non-Federal
14
$ Billions
FUSRAP
12
FC ( MR & T )
10
GI
8
RP + FCCE
6
GE
4
O&M
2
Construction
0
FY06
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FY07
FY08
FY09
FY10
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FY11
FY12
FY13
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FY2009-11 Budgets and Appropriations
• 1 Oct 08- 11Mar 09–FY09 Continuing Resolution Act (CRA)
• 17 Feb 09 – ‘American Recovery and Reinvestment Act’
-- PL 110-5 (ARRA)
• 24 Feb 09 – FY09 Omnibus Appns Conference Rpt Filed
• 26 Feb 09 – President presents FY10 Budget Overview
• ~11 Mar 09? – FY09 Appropriations Act
• 11 Mar 09 – FY11 Budget Guidance to field offices
• ~16 Mar 09 – ARRA funds issued to field offices
• Mar 09 – FY09 Appns Act funds issued to field offices
• ~24 Apr 09 – FY10 Budget details released to public
• ~Apr 09 – House T&I ARRA Oversight Hearing
• 30 Apr 09 – House FY10 Budget Hearing
• Early-mid 2010 – Another Stimulus Bill?
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FY2009 Appropriations
---Some Provisions--• CRA and FY09 Appropriations exempt inland waterway
Rehabilitation (not new construction) projects from Inland
Waterways Trust Fund cost sharing for FY 2009
• Executive Order (E.O.) instructs agencies to ignore Report
directions.
• Current version of Bill incorporates Conference Report
text and tables into law by reference to counteract E.O.
except for Section 1, Reprogramming instructions.
• New Administration position on E.O. unknown
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Economic Stimulus
American Recovery and Reinvestment Act
• $4.6 billion for Corp programs
• ARRA funds are not to be cost shared with
Inland Waterways Trust Fund
• No cost-share exemption from the HMTF or
cost-shared projects
• Significant “transparency” requirements for
tracking, monitoring and reporting of specific
metrics
• Final selection of projects scheduled for
approval in mid Mar 09 with work allowances
to Districts immediately following selection.
• All unobligated funds (except for E&D, S&A
and claims) expire 30 Sep 2010.
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ARRA Appropriations
APPROPRIATIONS by ACCOUNT
($Billions)
• Investigations
$0.025
Construction
$2.000
• O&M
$2.075
• MR&T
$0.375
• Regulatory
$0.025
• FUSRAP
$0.100
• TOTAL
$4.600
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Other ARRA Provisions
• Projects are eligible only if funded “heretofore
or hereafter” [i.e. no new starts]
• Relief from cost sharing with IWTF
• Unlimited reprogramming authority (?)
• Up to 0.5% to administer the Act (Mgmt & Oversight)
• NLT $200M for Environmental Infrastructure
• Section 902 relief
• Ceiling relief for Section 14, 205, 206 and 1135
Programs
• Funds may be retained after 30 Sep 2010 expiration
for E&D, S&A, Claims
• WRDA Sec 9006 relief (levee surveys)
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Stimulus-Project Selection Criteria
Project selection criteria in Conference Report are
projects, programs or activities that will:
• be obligated/executed quickly;
• result in high, immediate employment;
• have little schedule risk;
• be executed by contract or direct hire of temporary
labor; and
• complete either a project phase, a project, an
element, or will provide a useful service that does
not require additional funding.
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Stimulus-Project Selection Criteria - II
Criteria
Implementation
Obligate/execute quickly;
High, immediate employment
Sort by award date.
For same date, sort by
completion date
Little schedule risk
Districts filter out all
projects with schedule risk
Complete project phase, project, Districts prepare work
or element, or will provide a
packages accordingly
useful service that does not
require additional funding
Execute by contract or direct
hire of temporary labor
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No in-house labor except for
OH/E&D/S&A
No reimbursements
No land purchase
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Stimulus-Project Selection Criteria III
In addition, some CW Program Goals
• Reasonable distribution across programs, e.g. flood risk
management, coastal and inland navigation,, environmental
restoration, hydropower, recreation
• Reasonable geographic distribution
• These goals were applied in select cases:
– IWTF project funding set at a reasonable appropriation level
• FY 2004-08/4 = $368/ IWTF Stimulus projects = $358 M)
– Environmental Infrastructure = $201M, consistent with legal minimum
– CAP requests totaled $60 M; all were included;
– Element size was capped at $50 M to enable geographic and
business line balance
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Stimulus Projects Submitted
Civil Works Data Base of Eligible Projects
that could be Executed by 30 Sep 2010
Account
Construction
3,600
Amount
(Millions)
$7,700
Opns & Maint
6,600
$7,000
700
$ 700
MR & T
Total
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Number of
Work Packages
10,900
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$15,400
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Projects Selected - PREDECISIONAL
Account
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Work Packages
Projects
Construction - IN
($2 billion)
272 packages
250 projects
Construction – OUT
468 packages
117 projects
Amount
$25 K - $49 M
$25 K - $90 M
$2 K - $355 M
$2 K - $1.2 B
O&M - IN
($2.075 billion)
2,164 packages
516 projects
$1 K - $36 M
$23 K - $85 M*
O&M – OUT
3,418 packages
655 projects
$1 K - $43 M
$12 K - $147 M
Investigations - IN
69 projects
$20 K - $2 M
Investigations – OUT
420 projects
$1 K - $4 M
MR&T – IN ($375 M)
247 packages
39 projects
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$25 K - $24 M
$231 K - $41 M
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Benefits-Jobs Created
• Jobs created by USACE portion of
stimulus estimated at 139,000.
– Direct creation of ~37,000 new
private sector jobs with average
annual wages between $38,000
and $42,500
– Additional 102,000 new jobs in
industries supplying construction
and O&M activities and sell goods
and services to new workers and
their families.
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FY2010 Budget - Status
• President will delivered the FY10 Budget Overview to
Congress on Feb 27th. It is a high level document
(with no accompanying agency detailed project
information)
• OMB has provided the Corps a FY10 Budget ceiling
• ASA/Corps staff are working with OMB on the final
criteria, program amounts and project details.
• Target is to release FY10 Budget detailed information
in mid-late April
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And for the Out Years …
• FY 2011 Budget Guidance to divisions and
districts to be sent on Mar 11th
• Expect a major debate on Federal funding priorities to
commence with the FY 11 budget
• We will continue to place a high priority on accurate
‘capability’ estimates from
• We will continue to place a high priority on execution of
all that is appropriated
• We will seek to improve our budget ‘defense’ of the
value to the nation of the water resources infrastructure
for which we are responsible
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Trends To Watch
• Continuing
Pressure on Budget
• Entitlement Programs
( Medicare, Medicaid, Social Security)
• Interest on the National Debt
• Status of US & World Economies
• Cost of Infrastructure Recapitalization
• Improved Inspection Techniques
• Modern Design Standards
• Cost of meeting ESA and other legal
requirements
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Making the Case for Infrastructure
What is the Message?
•
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•
•
•
•
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National Economic Efficiency?
Environmental Sustainability?
Security?
Quality of Life?
All of the Above?
None of the Above
Other????
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BUILDING STRONG
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