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
Unintended Costs/Consequences
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:
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
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]