Transcript Slide 1

August 7, 2012
American Association of School Administrators
 Congressional
Context
 How did we get here?
 What is it?
 What does it mean?
 Talking Points
 What can I do?
 Resources
Interest,
7%
Non-Defense
Discrtionary, 17%
Defense
Discretionary,
19%
Medicare &
Medicaid, 21%
Social Security,
21%
Other Mandatory,
15%
Source: National Journal, Field Guide to a Lame Duck, July 2012
 Stems
from Debt Ceiling Debate, Summer
2011
 Resulted in Budget Control Act which, among
other things, created bipartisan, bicameral
Joint Deficit Commission
 12 member committee tasked with
identifying $1.2 trillion in cuts/savings over
10 years
 Failed to produce plan, triggering
sequestration
 Sequestration
= automatic, across-the-board
cuts
 Process ‘triggered’ in Jan. 2012, cuts will
come Jan. 2013
 Impacts almost all aspects of federal budget;
ALL programs in USED except Pell
 Initial CBO estimates placed sequestration
cuts at 7.8%; more likely to be at 9.1%
Source: Bipartisan Policy Center
Source: Bipartisan Policy Center

FY13 Timeline poses challenges!
Cuts would come in the middle of the fiscal year (July 2013 for
schools, impacting the 2013-14 school year)
 Cuts will happen regardless of what Congress appropriates
 Dearth of information. Cuts come at the
‘program/project/activity’ level, a term that is largely undefined
by departments.
 Across-the-board cuts are problematic for many PPAs. As would be
the case in education, most PPA accounts are nearly all personnel
costs, and many include/would impact large
procurement/construction projects
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Unintended Costs/Consequences
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Jobs, Jobs, Jobs
Increased per-unit procurement costs
Increased unemployment insurance
Recessionary pressures?
 Remember
the Title I and IDEA adjustments in
Oct 2011? Similar concept, except deeper.
 Cuts to USED will be between $3.5 and $4.1
billion
 Estimated Education Impact at 7.8% level:
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Title I: $1.1 billion
IDEA $978 million
Perkins:$136 million
Head Start: $590 million
 Cuts
will be CALCULATED in January 2013
 Cuts will be MADE in July 2013
 NO cuts for 2012-13 school year (with the
exception of Impact Aid)
 All cuts will be felt in 2013-14 school year.
 Cuts
are coming, whether through
sequestration or Congressional action
 Congress could act to identify blend of
spending cuts, revenue (taxes) and
mandatory spending (Medicare) reform
 Congressional action would likely still include
cuts to education, but to a much lesser
extent
 Congress
gave themselves the work of
identifying$1.2 trillion in savings
 If we get to sequestration, it is because Congress
failed to act.
 Sequestration is a blunt instrument, cutting all
programs without considering demand,
effectiveness, or return on investment.
 Efforts to exempt portions of the budget (i.e.,
defense) simply amplify the severity of cuts to
education
 Contact
your Senators and Representative
and urge them to support Congressional
efforts to pick up the work of the Super
Committee
 Use the Invoice on the ‘Resources’ slide to
let your Congressional delegation know how
the sequestration cuts would impact your
district
 Work with your Board to explain to the
community what sequestration is and how it
would effect your district
 AASA
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Sequestration Resources:
AASA Sequestration Toolkit
AASA Legislative Corps
AASA Advocacy Update
The Leading Edge (policy/advocacy blog)
Advocacy Twitter: @Noellerson, @SPudelski
Dan Domenech
Executive Director
Bruce Hunter
Associate Executive
Director
Noelle Ellerson
Assistant Director, Policy
Analysis & Advocacy
[email protected]