Table of Contents MARCH

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1 MARCH 2014

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3 Table of Contents Introduction About NACo 4 NACo Federal Policy Agenda.. 6 Federal Budget Process 7 President s FY 2015 Budget Overview and Noteworthy Changes 9 Tax and Finance Proposals including Municipal Bonds Medicaid.. 23 U.S. Army Corps of Engineers. 25 U.S. Department of Agriculture 26 U.S. Department of Commerce s Economic Development Administration U.S. Department of Commerce s National Telecommunications and Information Administration U.S. Department of Education. 42 U.S. Department of Energy 43 U.S. Department of Health and Human Services. 45 U.S. Department of Homeland Security, Federal Emergency Management Agency U.S. Department of Housing and Urban Development U.S. Department of the Interior U.S. Department of Justice U.S. Department of Labor U.S. Department of Transportation U.S. Environmental Protection Agency Other Resources and Contacts MARCH

4 About NACo The National Association of Counties (NACo) is the only national organization that represents county governments in the United States. Founded in 1935, NACo assists America s 3,069 counties in pursuing excellence in public service to produce healthy, vibrant, safe and resilient counties. NACo promotes sound public policies, fosters county solutions and innovation, promotes intergovernmental and public-private collaboration and provides valueadded services to save counties and taxpayers money. Healthy, vibrant, safe and resilient counties across America. MARCH

5 Why Counties Matter MARCH

6 Federal Policy Agenda Snapshot of Pending County Issues Entitlement Reform: Medicaid Cuts and Cost Shifts to States and Counties Tax Reform: Changes to Tax-Exempt Municipal Bonds; Elimination of State and Local Property, Income and Sales Tax Deductions White House/Office of Management and Budget and Federal Agency Regulatory Review Marketplace Fairness Act (Existing Remote/Online Sales Taxes) MAP-21 Highway and Transit Reauthorization Payment in Lieu of Taxes (PILT) and Secure Rural Schools Funding and Extension Affordable Care Act and Impact on Counties FY 2015 Federal Appropriations Aid to State and Local Governments Immigration Reform and County Impact Workforce Investment Act (WIA) Reauthorization MARCH

7 Federal Budget Process What is the President s Budget Request? The Congressional Budget Act of 1974 requires that the President of the United States submit to Congress, on or before the first Monday in February of each year, a detailed budget request for the coming federal fiscal year, which begins on October 1. Prepared by the president and the president's Office of Management and Budget (OMB) the annual budget: Informs Congress of the president's vision of the three basic elements of U.S. fiscal policy: (1) how much money the government should spend on public needs and programs; (2) how much money the government should take in through taxes and other sources of revenue; and (3) how large a deficit or surplus will result. Tells Congress how much money the president believes should be spent on the various cabinetlevel federal functions like defense, education, health, agriculture, etc. Within each function, the president's budget request must establish requested spending levels for smaller groups of related programs known as budget accounts. Informs Congress of any changes in federal spending or tax policy the president intends to recommend. MARCH

8 Federal Budget Process Federal Budget Process Congressional, not administrative, action drives the federal budget process forward Since Senate Budget Committee Chair Patty Murray (D-WA) has announced the Senate will not pass a budget resolution for FY 2015, Congress will not go through the full budget process for FY 2015, despite what actions the House or President take Although the president has no formal role in the Congressional budget process, presidential budget submissions can be influential in terms of laying out an agenda and putting pressure on lawmakers Procedural path Direction of political influence Presidential Budget House Budget Resolution Senate Budget Resolution Conference Committee House vote on Conference Report Senate Vote on Conference Report Source: National Journal Membership Budget Enacted MARCH

9 President s FY 2015 Budget President Obama s FY 2015 Budget Proposes $1.1 Trillion in Discretionary Spending Comparison of FY 2014 and FY 2015 Budget Requests (in billions) Source: National Journal Membership MARCH

10 President s FY 2015 Budget Budget Overview Outlays FY 2013 FY 2014 FY 2015 FY 15 President s Budget vs. FY 14 Enacted Discretionary Security $626 B $612 B $606 B - $6 B Non-Security $522 B $562B $543 B - $19 B Mandatory Social Security $808 B $852 B $896 B + $44 B Medicare $492 B $513 B $529 B + $16 B Medicaid $265 B $308 B $331 B + $23 B Other $521 B $560 B $659 B + $99 B Net Interest $221 B $223 B $251 B +$28 B Total Outlays $3,455 B $3,633 B $3,812 B + $179 B MARCH

11 President s FY 2015 Budget Key Provisions of President Obama s FY 2015 Budget Request Category Requested Budget Changes Overall Budget Stays within the approximately $1.1 trillion budget cap set for FY 2015 Defense Education Increases overall defense spending by additional $28 billion in FY 2015 Decreases number of active-duty Army personnel; retires weapons systems, including A-10 attack aircraft Makes permanent tax credits for higher education Provides federal financing for universal Pre-K programs Energy Entitlements Boosts spending on basic research Increases funds to maintain the nation s nuclear weapons stockpile Does not include major cuts to Medicaid Removes a proposal to link Social Security benefits to chained CPI, a policy included in previous budgets Does not include plans to reform Medicare or Social Security programs Health Care Maintains funding for Affordable Care Act Infrastructure Provides $302 billion over four years to boost infrastructure spending, offset by changes to business tax code Minimum Wage Increases the minimum wage to $10.10 per hour Welfare Tax and Finance Increases Earned Income Tax Credit for parents of young children, expands eligibility for childless workers Extends benefits for long-term unemployed Taxes carried interest as personal income rather than capital gains Proposes closing several corporate tax expenditures to raise revenue Again proposes the 28% cap on the value of certain tax benefits, including tax-exempt interest on municipal bonds Proposes new America Fast Forward Bonds for infrastructure investment, similar to Build America Bonds, to attract a broader investment base; these would be taxable bonds issued by state and local governments who could receive direct subsidy payments from federal government equal to 28% of the coupon interest on the bond Source: National Journal Membership MARCH

12 President s FY 2015 Budget Noteworthy Eliminations for Counties Category Agriculture Requested Budget Changes Eliminates Rural Water and Waste Disposal guaranteed loans ($50 million in FY 2014) Eliminates High Energy Cost Grants ($9.25 million in FY 2014) Eliminates Community Facilities guaranteed loans ($75 million in FY 2014) Eliminates Economic Impact Initiative Grants ($9 million in FY 2014) Environment Eliminates the Diesel Emissions Reduction Grant Program ($20 million in FY 2014) Health Interior Justice Eliminates Preventative Health and Health Services Block Grants under the Prevention and Public Health Fund ($160 million in FY 2014) Would repeal Section 224(b) of the Energy Policy Act of 2005 to permanently discontinue historic 25% payments to counties from federal geothermal leasing revenues and instead provide 50% to the states and 50% to the U.S. Treasury. This would result in a loss of over $4 million to counties in 2014 and $48 million over 10 years Eliminate $14 million of discretionary funding to counties from the National Wildlife Refuge Fund. An estimated $8 million in permanent receipts would remain available to share with county governments. Refuge revenue sharing payments have historically offset local tax loss due to federal land ownership Eliminates the State Criminal Alien Assistance Program (SCAAP) ($180 million in FY 2014) Eliminates the Methamphetamine Enforcement and Cleanup program ($8 million in FY 2014) Transportation Eliminates the Small Community Air Service Program ($5 million in FY 2014) MARCH

13 President s FY 2015 Budget Noteworthy Cuts for Counties Category Agriculture, Rural Development and Nutrition Environment Human Services Housing and Urban Development Transportation Requested Budget Changes Cuts total USDA Rural Development funding by $456 million ($2.5 billion in budget authority requested in FY 2015) Cuts Water and Wastewater Grants by $41 million ($304 million requested in FY 2015) Cuts Rural Electric Direct Loans by $1.1 billion ($5 billion requested in FY 2015) Cuts Rural Telecommunications Direct Loans by $345 million ($345 million requested in FY 2015) Cuts Community Facilities Grants by $8 million ($21 million requested for FY 2015) Cuts Sec. 502 Single Family Housing Direct Loans by $540 million ($360 million requested for FY 2015) Cuts Value-Added Producer Grants by $4 million ($11 million requested for FY 2015) Cuts the Supplemental Nutrition Assistance Program by $4.5 billion ($84 billion requested for FY 2015) Cuts the Clean Water State Revolving Fund by $430 million ($1.02 billion requested for FY 2015) Cuts the Drinking Water State Revolving Fund by $150 million ($757 million requested for FY 2015) Cuts Brownfields Infrastructure project funding by $5 million ($85 million requested for FY 2015) Cuts the Administration for Children and Families Community Services Block Grant by $324 million ($350 million requested for FY 2015) Cuts the Administration for Children and Families Low Income Home Energy Assistance Program by $875 million ($2.8 billion requested for FY 2015) Cuts the Department of Labor s Senior Community Service Employment by $54 million ($380 million requested for FY 2015) Cuts the Community Development Block Grant by $200 million ($2.8 billion requested for FY 2015) Cuts the HOME program by $50 million ($950 million requested for FY 2015) Cuts Essential Air Service funding by $9 million ($261 million requested for FY 2015) Cuts Airport Improvement Grants by $443 million ($2.75 billion requested for FY 2015) MARCH

14 President s FY 2015 Budget Category Agriculture and Rural Development Education Energy Environment Human Services Housing and Urban Development Interior Justice Transportation Noteworthy Increases for Counties Requested Budget Changes Nearly doubles funding for rural broadband access, requesting $29 million in loans and grants Increases funding for Pell Grants by $270 million ($29.17 billion requested for FY 2015) Increases Individuals with Disabilities Education Grants to States by $100 million ($11.57 billion requested for FY 2015) Increases overall funding for DOE s Energy Efficiency and Renewable Energy Office by $416 million ($2.32 billion requested for FY 2015) Increases funding for the Weatherization Assistance Program (WAP) by $53 million ($227 million requested for FY 2015) Increases State and Local Air Quality Management by $15 million ($243 million requested for FY 2015) Increases Water Pollution Control Grants by $18 million ($249 million requested for FY 2015) Increases the Social Services Block Grant by $44 million ($1.7 billion requested for FY 2015) Increases the Child Care and Development Fund by $807 million ($6 billion requested for FY 2015) Increases funding for Head Start by $270 million ($8.86 billion requested for FY 2015) Increases Homeless Assistance Grants by $300 million ($2.4 billion requested for FY 2015) Increases the Land and Water Conservation Fund by $159 million ($423 million requested for FY 2015) proposes to permanently authorize annual funding, without further appropriation or fiscal year limitation, for LWCF in the Departments of the Interior and Agriculture Increases funding for the Second Chance Act Program by $47 million ($115 million requested for FY 2015) Increases funding for Juvenile Justice programs by $45 million ($300 million requested for FY 2015) Increases funding for Federal-Aid Highways by $7 billion ($47.3 billion requested in FY 2015) Increases funding for TIGER grants by $11 million ($611 million requested for FY 2015) Increases funding for Amtrak/Current Rail Service by over $1 billion ($2.45 billion requested for FY 2015) Increases funding for Formula/Bus Grants by $5.3 billion ($13.9 billion requested for FY 2015) Adds funding for newly established Rail Service Improvement Program ($2.325 requested for FY 2015) MARCH

15 President s FY 2015 Budget Federal Aid to States and Localities Would See Small Increase under President s Budget The President s Budget would provide $640.8 billion in aid for state and local governments in FY 2015, a 5.5% increase from FY 2014 HOWEVER, of the total proposed grant spending in 2015, 55.7% is for health programs, mainly federal share of Medicaid Beyond health programs, 17% is directed to income security programs 10.8% to education, training and social services 10.5% to transportation 2.7% to community and regional development MARCH

16 President s FY 2015 Budget New User Charge Proposals USDA Forest Service: NEW grazing administrative processing fee. To recover some of the costs of issuing grazing permits and leases on Forest Service lands, the Budget proposes a fee of $1 per head month for cattle and other livestock beginning on March 1, USDA Rural Utilities Service: NEW infrastructure permitting fee. The Budget proposes to collect new fees from loan applicants for electric transmission infrastructure projects to cover costs incurred by USDA for participating in required public engagement activities and tribal and state consultation. DOI Bureau of Land Management: NEW public lands oil and gas lease inspection fees. The Budget proposes new inspection fees for oil and gas facilities that are subject to inspection by BLM. The fees would be based on the number of oil and gas wells per facility. DOI Bureau of Land Management: NEW grazing administrative processing fee. The Budget proposes a three-year pilot project to allow BLM to recover some of the costs of issuing grazing permits and leases on BLM Lands. BLM would charge a fee of $1 per Animal Unit Month, which would be collected along with current grazing fees. MARCH

17 Tax-Exempt Municipal Bonds President s Plan Would Cap the Tax Benefit on Municipal Bond Interest The President s Budget reiterates last year s proposal to impose a cap of 28% on the value of certain tax benefits, including tax-exempt interest on municipal bonds The cap represents a partial tax on otherwise tax-exempt bond interest and would apply to taxpayers in the 33-, 35-, and 39.6-% tax brackets For 2014, the 33% bracket applies to single taxpayers with taxable incomes above $183,350 and married taxpayers filing jointly with taxable incomes above $226,850 The cap would apply to outstanding as well as new bonds and would apply beginning in 2015 In addition to tax-exempt interest, the cap would also apply to itemized deductions and certain other tax preferences MARCH

18 Tax-Exempt Municipal Bonds Proposals to Alter the Tax-Exempt Status of Municipal Bonds Continue to Remain a Threat to County Government 2010 Simpson-Bowles: Proposed elimination of all income tax expenditures; interest earned on state and local municipal bonds would be fully taxable for newly-issued tax exempt municipal bonds 2012 President s FY 2013 Budget Proposal: Proposed placing a 28% limit on the value of specified deduction or exclusions from AGI and all itemized deductions; the limit would apply on interest earned for new and outstanding state and local tax exempt bonds Mar 2013 Apr 2013 Feb 2014 Mar 2014 FY 2014 Senate Budget Resolution: Suggested the possibility of a cap being placed on tax expenditures, which could include the exemption for interest earned on state and local municipal bonds President s FY 2014 Budget Proposal: Reiterates 28% cap on the value of certain tax benefits, including interest earned on new and outstanding state and local tax exempt bonds Ways and Means Chair Dave Camp (R-MI) Tax Reform Draft: Among a host of significant changes to provisions important to state and local governments, the draft would place a 10% surtax on tax-exempt interest for high income taxpayers ($400,000 for single filers, $450,000 for married filers) President s FY 2015 Budget Proposal: Repeats 28% cap on the value of certain tax benefits, including interest earned on new and outstanding state and local tax exempt bonds MARCH

19 Tax-Exempt Municipal Bonds MUNICIPAL BONDS: A CRITICAL ROLE IN LOCAL INFRASTRUCTURE, JOBS AND EVERYDAY LIFE Tax-exempt municipal bonds are the single most important tool that counties use for financing our critical infrastructure. Any change to the taxation status of often voter-approved debt issued by counties risks: Nature of the U.S. federal-state-local partnership Slowing economic recovery and investments in vital infrastructure Shifting tax burden to local level, especially property owners Forcing more cuts in local government jobs (e.g. teachers, police, fire) Current Market = More than 1.5 million municipal bonds outstanding, totaling more than $3.7 trillion MARCH

20 Tax-Exempt Municipal Bonds The Importance of Tax-Exempt Municipal Bonds Tax-exempt municipal bonds are the most important tool in the U.S. for financing investment in schools, roads, water and sewer systems, airports, bridges and other vital infrastructure. State and local governments invested $3.2 trillion in infrastructure through long-term tax-exempt municipal bonds between 2003 and 2012, 2.5 times more than the federal investment Ninety (90) percent of infrastructure muni-bonds financing went to schools, hospitals, water, sewer facilities, public power utilities, roads and mass transit over the last 10 years. During that decade, $514 billion was invested to build primary and secondary schools with financing from tax exempt bonds, nearly $288 billion of financing went to general acute-care hospitals, nearly $258 billion to water and sewer facilities, nearly $147 billion to public power projects, $105.6 billion to mass transit and nearly $178 billion to roads, highways and streets In 2012 alone, the debt service burden for counties would have risen by $9 billion if municipal bonds were taxable over the last 15 years and by about $3.2 billion in the case of a 28% cap as proposed by the President s budget. Projecting this over the ten-year period between 2003 and 2012, without the full exemption, state and local governments would have paid almost $500 billion more in interest and $173.4 billion more in the case of a 28% cap MARCH

21 Direct Pay Subsidy Bonds President s Plan Proposes an America Fast Forward (AFF) Bonds Program Similar to Build America Bonds (BABs) Program, but direct subsidy payments to state and local governments is set at 28%, effective beginning in 2015 AFF Bonds can be used for purposes currently eligible for tax-exempt bonds, such as working capital, current refundings of prior capital project financings, and financing for the types of projects and programs that can be financed with qualified private activity bonds As opposed to the previous budget budget proposal, the FY 2015 proposal recommends precluding the subsidy payments from being subject to sequestration, which is the problem currently faced by state and local governments who issued BABs (Issuers now facing increased costs due to sequestration cuts!) MARCH

22 Private Activity Bonds President s Plan Proposes Changes Related to the Use of Private Activity Bonds Qualified Highway or Surface Freight Transfer Facility Bonds: Currently, tax-exempt private activity bonds may be used to finance qualified highway or surface transfer facilities but the U.S. Secretary of Transportation only has a total of $15 billion of issuance authority; President s plan would increase this limit to $19 billion Private Activity Bonds for Water Infrastructure: Under current law, the use of private activity bonds is subject to an annual unified state volume cap; the President s plan would provide an exception for that cap if the private activity bonds are used for exempt water or sewage facilities (as defined in the Internal Revenue Code Sec.142) Public Ownership Requirements of Certain Facilities: Presently, airports, docks, wharves and mass commuting facilities must be owned by a governmental unit as a condition of private-activity bond financing; the President s plan would eliminate this requirement Land Acquisition Limits: For qualified private activity bonds, under current law, less than 25% of the net proceeds may be used for the acquisition of land or an interest in land; the President s plan would increase the limit to 35% MARCH

23 Medicaid Why Do Counties Care About Changes to Medicaid? In 32 states, counties are required to provide health care for low income, uninsured or underinsured residents In 21 states, counties are required to contribute to the non-federal share of Medicaid Counties spend $68 billion annually on health care services Counties run 964 hospitals nationwide Counties run 647 nursing homes 75% of publicly owned facilities MARCH

24 Medicaid The President s Plan Does Not Propose Cuts to Medicaid The President's FY 2015 Budget does not call for significant cuts to Medicaid so as to not discourage states to take up the Affordable Care Act expansion Medicaid proposals in the Budget that may impact counties include: Extending the ACA s Disproportionate Share Hospital (DSH) cuts through FY 2024 (would cut approximately $3.3 billion) Extending Medicaid primary care payment increase through FY 2015 and include mid-level providers (would add $5.4 billion) Permanently extending Express Lane Eligibility for children (would add $1.1 billion) MARCH

25 U.S. Army Corps of Engineers U.S. Army Corps of Engineers Highlights Civil Works Program: The Budget requests $4.56 billion in discretionary funding, $1 billion less than FY This amount includes $915 million in spending from the Harbor Maintenance Trust Fund (a decrease of $85 million from FY 2014, but a significant increase from levels authorized prior to FY 2014) The total amount requested includes: $2.6 billion for Operation and Maintenance ($261 million below FY 2014) $1.125 billion for Construction ($531 million below FY 2014) $245 million for Mississippi River and Tributaries ($62 million below FY 2014) $80 million for Investigations ($44 million below FY 2014) $28 million for Flood Control and Coastal Emergencies (level with FY 2014) The Budget also includes $1.82 billion for the study, design, construction, operation and maintenance of inland and coastal navigation projects. It funds capital investments on the inland waterways based on the estimated revenues to the Inland Waterways Trust Fund; the Budget assumes enactment of a new user fee to increase revenue to this trust fund to enable a significant increase in funding for such investments in the future MARCH

26 U.S. Department of Agriculture USDA Budget Authority The estimated $11 billion decrease in estimated FY 2015 mandatory funding reflects decreases in the Commodity Credit Corporation Fund and reduced crop insurance expenses Source: U.S. Department of Agriculture MARCH

27 U.S. Department of Agriculture USDA 2015 Outlays Source: U.S. Department of Agriculture MARCH

28 U.S. Department of Agriculture Secure Rural Schools & Community Self Determination Act Payments for FY 2013, totaling about $300 million, authorized by the Helium Stewardship Act of 2013 (P.L ), will be disbursed in early 2014 The President s Budget proposes a five-year reauthorization of the Secure Rural Schools and Community Self Determination Act (SRS) with mandatory funding. The proposal sharply reduces funding beginning with $279 million for FY 2014, dropping to $251 million in FY 2015, then falling to $158 million in FY 2016, $122 million in FY 2017 and $101 million in FY 2018 The Budget also proposes to revise the percentages of funding available for each of the three SRS program titles Title I funding for schools and roads, currently 85% of the total, would be reduced by 20% for 2014, 10% for 2015, and 25% each year in 2016, 2017 and 2018 Title II funding for economic investment and forest restoration, currently 10% of the total, would be doubled from the previous level and then held constant for the five-year reauthorization Title III fire assistance funding, currently 5% of the total, would be reduced by 50% in 2014 and eliminated in 2015 and thereafter MARCH

29 U.S. Department of Agriculture USDA Forest Service Fire Suppression The President s Budget proposes a significant reform to address growing wildfire suppression costs The Budget would allow the Forest Service and Interior Department to dip into the Federal Emergency Management Agency s disaster relief account to fight the nation s largest wildfires in certain cases The Budget, which mirrors bipartisan bills (H.R. 3992, S. 1875) in both chambers of Congress, would effectively move the cost of fighting the nation s largest one percent of wildfires which have consumed nearly 30% of firefighting costs off the books, since FEMA s disaster relief account is not subject to discretionary spending caps Congress currently funds all wildfire suppression efforts through annual appropriations bills, which are subject to discretionary spending caps. But as wildfires have increased in size and frequency in recent years, annual funding levels for suppression have been quickly depleted, forcing the Forest Service and the Interior Department to transfer funding from other accounts to pay the firefighting bills. Other county priorities are delayed due to the funding shortfalls imposed by the need to borrow for catastrophic wildfires MARCH

30 U.S. Department of Agriculture Overview of USDA Rural Development The President s Budget proposes major cuts to USDA Rural Development funding. The Budget requests $2.5 billion in budget authority for USDA Rural Development, $456 million below the FY 2014 level FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted USDA Rural Development Total Funding and Operational Costs Rural Development Operational Costs (including Salaries & Expenses) $ M $ M $ M $ M -$1.55 M Total USDA Rural Development Program Level Budget Authority $36,087 M $2,250 M $39,643 M $2,279 M $39,518 M $2,961 M $37,670 M $2,505 M - $1,848 M - $456 M MARCH

31 U.S. Department of Agriculture USDA Rural Development: Rural Utilities Services (RUS) Water and Waste Disposal Programs Grants: $304 million, cut from $452 million in FY 2014 and $400 million in FY 2013 (Administration s justification for cut is that low-cost direct loan rates will compensate for the change. However, this could jeopardize some local projects and put the program at risk if interest rates rise) Direct Loans: cut to $1.2 billion, $40 million below the FY 2014 level of $1.24 billion Guaranteed Loans: subsidy funding eliminated, funded at $50 million in FY 2014 Broadband Programs Grants: $21 million, $11 million above FY 2014 level Direct Loans: $44 million, $9 million above FY 2014 level Distance Learning and Telemedicine Grants: $25 million, $1 million above FY 2014 level High Energy Cost Grants: funding eliminated, funded at $10 million in FY MARCH

32 U.S. Department of Agriculture FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted USDA Rural Utilities Service Rural Water and Waste Disposal Program Water and Waste Disposal Program (Direct Loans) $ M $1, M $1, M $1, M No change Water and Waste Disposal Program (Guaranteed Loans) $62.89 M $61.32 M $50.00 M $0.00 M Eliminated Water and Waste Disposal Program (Grants) $ M $ M $ M $ M - $41.52 M Rural Electric Direct Loans (Program Level) $7, M $7, M $6, M $5, M - $1, M Rural Telecommunications Direct Loans (Program Level) $ M $ M $ M $ M - $ M Distance Learning & Telemedicine Grants $21.00 M $23.08 M $24.32 M $24.95 M + $0.63 M Broadband Direct Loans $ M $42.24 M $34.48 M $44.24 M + $9.76 M Broadband Direct Loan (Subsidy) $6.00 M $3.89 M $4.50 M $8.27 M + $3.77 M Broadband Grants $10.37 M $10.11 M $10.37 M $20.37 M + $10.00 M High Energy Cost Grants $9.50 M $9.75 M $10.00 M $0.00 M Eliminated MARCH

33 U.S. Department of Agriculture USDA Rural Development: Rural Housing Service (RHS) Community Facilities Program Grants: $21 million, $8 million below FY 2014 level Direct Loans: $2.2 billion, level with FY 2014 Guaranteed Loans: Funding Eliminated ($75 million in FY 2014) Economic Impact Initiative Grants: Funding Eliminated ($9 million in FY 2014) Housing Programs Sec. 502 Single Family Housing Direct Loans: $360 million, $540 million below FY 2014 level Sec. 521 Rental Assistance Grants: $1.089 billion, $21 million below FY 2014 level Sec. 538 Multi-family Guaranteed Loans: $150 million, level with FY MARCH

34 U.S. Department of Agriculture FY 2012 FY 2013 FY 2014 FY 2015 President's Budget FY 15 President s Budget vs. FY 14 Enacted USDA Rural Housing Service Section Single Family Housing Direct Loan (Program Level) $ M $ M $ M $ M - $ M Section Single Family Housing Direct Loan (Subsidy) $42.57 M $50.00 M $24.00 M $27.00 M + $3.00 M Section Single Family Unsubsidized Loan Guarantees (Program Level) $24, M $24, M $24, M $24, M No change Section Single Family Unsubsidized Loan Guarantees (Subsidy) $0.00 M $0.00 M $0.00 M $0.00 M No change Section Very-Low Income Repair Loans (Program Level) $10.00 M $26.00 M $26.00 M $26.00 M No change Section Very-Low Income Repair Loans (Subsidy) $1.42 M $3.53 M $2.00 M $4.00 M + $2.00 M Section Farm Labor Housing (Program Level) $27.00 M $21.00 M $24.00 M $24.00 M No change Section Farm Labor Housing Direct Loans (Subsidy) $9.00 M $7.08 M $6.00 M $7.00 M + $1.00 M Section Rental Housing Direct Loans (Program Level) $64.48 M $31.27 M $28.43 M $28.43M No change Section Rental Housing Direct Loans (Subsidy) $22.00 M $10.17 M $6.66 M $10.00 M + $3.34 M Section Rental Assistance Program Grants $ M $ M $1, M $1, M - $21.00 M Section Self-Help Housing Land Development Loans (Program Level) $5.00 M $5.00 M $5.00 M $0.00 M Eliminated Section Self-Help Housing Land Development Loans (Subsidy) $0.00 M $0.00 M $0.00 M $0.00 M No change Section Multi-family Guaranteed Loans $ M $ M $ M $ M No change Multi-family Guaranteed (Subsidy) $0.00 M $0.00 M $0.00 M $0.00 M No change Rural Community Facilities Programs Community Facility Program (Direct Loans) $1, M $2, M $2, M $2, M No change Community Facility Program (Guaranteed Loans) $ M $54.00 M $75.00 M $0.00 M Eliminated Community Facility Program (Grants) $11.36 M $27.00 M $29.00 M $21.00 M - $9.00 M Tribal College grants $3.36 M $3.28 M $4.00 M $4.00 M No change Rural Community Development Initiative (Grants) (a) $3.62 M $5.00 M $5.00 M $9.00 M + $4.00 M Economic Impact Initiative (Grants) $5.93 M $7.00 M $9.00M $0.00 M Eliminated MARCH

35 U.S. Department of Agriculture USDA Rural Development: Rural Business Cooperative Service (RBS) The Budget would consolidate several rural business programs into one program, the Rural Business and Cooperative Grant Program, funded at $58 million Consolidates the Rural Business Opportunity Grants, Rural Business Enterprise Grants, Rural Microenterprise Investment Program, Rural Cooperative Development Grants and the Rural Community Development Initiative Intermediary Relending Program: $10 million, $9 million below FY 2014 level Business and Industry Guaranteed Loans: $591 million, $367 million below FY 2014 level Value-added Producer Grants: $11 million, $4 million below FY 2014 level MARCH

36 U.S. Department of Agriculture USDA Rural Business-Cooperative Service FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted Intermediary Relending Program (Rural Development Loan Fund) (Program Level) $17.71 M $18.00 M $19.00 M $10.00 M - $9.00 M Intermediary Relending Program (Subsidy) $6.00 M $6.00 M $4.00 M $3.00 M - $1.00 M Business and Industry Guaranteed Loans $ M $ M $ M $ M - $ M Business and Industry Loans (Subsidy) $45.34 M $52.00 M $67.00 M $30.00 M - $37.00 M Rural Business and Cooperative Grants (a) - NEW Program Combines RBEG, RBOG, and Rural Community Development Initiative $0.00 M $0.00 M $0.00 M $58.00 M New Program Rural Cooperative Development Grants (a) $8.80 M $6.47 M $5.80 M $0.00 M - $5.80 M Rural Business Enterprise Grants (a) $24.31 M $23.71 M $24.32 M $0.00 M - $24.32 M Rural Business Opportunity Grants (a) $2.25 M $2.19 M $2.25 M $0.00 M - $2.25 M Value-added Ag Product Market Grants (Discretionary) $14.00 M $13.87 M $15.00 M $11.00 M - $4.00 M Appropriate Technology Transfer for Rural Areas $2.25 M $2.08 M $2.25 M $2.09 M - $0.16 M Rural Energy for America (Sec. 9007) (Program level for Loans) $0.00M $13.00 M $13.00 M $47.00 M + $34.00 M Rural Energy for America (Sec. 9007) (Grants) $0.00 M $0.00 M $0.00 M $5.00 M + $5.00 M Rural Microentrenterprise Assistance Program (Sec. 6023) (Program Level for Loans) $0.00 M $0.00 M $0.00 M $26.00 M + $26.00 M Rural Microentrenterprise Assistance Program (Sec. 6023) (Subsidy) (a) $0.00 M $0.00 M $0.00 M $3.00 M + $3.00 M (a) The budget requests the consolidation of grants into a new Rural Business and Cooperative Grant program. The following grants are part of the consolidation: Rural Business Opportunity, Rural Business Enterprise, Rural Microenterprise Investment, Rural Cooperative Development, and the Rural Community Development Initiative MARCH

37 U.S. Department of Agriculture USDA Food and Nutrition Service The Supplemental Nutrition Assistance Program (SNAP): The Budget would provide $84.25 billion in FY 2015, a reduction of $4.58 billion. For 2015, the budget estimates that SNAP participation may fall by over 1.6 million participants per month to an average of 47 million. Continued improvement in the economy is anticipated to cause participation to further decrease Child Nutrition Programs (school lunch, school breakfast): The Budget would provide $20.71 billion, an increase of $1.24 billion a level that would support increased participation, food costs inflation and a six-cent performance-based reimbursement rate authorized for lunches Women, Infants and Children Program (WIC): The Budget would provide $6.82 billion in FY 2015, an increase of $107 million MARCH

38 U.S. Department of Commerce s Economic Development Administration Economic Development Administration Highlights The Budget proposes $248 million for EDA in FY 2015, $1 million above FY 2014 level Program Breakdown: $210 million for EDA s core Economic Development Assistance Programs: Planning Program: Level funding at $29 million Public Works: Cut by $12 million to $115 million Economic Adjustment Assistance: Increased by $5 million to $47 million Technical Assistance: Increased by $1 million to $12 million EDA Reforms: The Budget notes, EDA plans to implement changes to ensure assistance is being delivered to communities with the greatest efficiency and impact MARCH

39 U.S. Department of Commerce s Economic Development Administration U.S. Department of Commerce FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted U.S. Economic Development Administration *$ M $ M $ M $ M + $1.00 M Economic Development Assistance Programs $ M $ M $ M $ M No change Planning Grants $29.00 M $29.00 M $29.00 M $29.00 M No change 21 st Century Innovation Infrastructure / Public Works $ M $79.00 M $ M $ M - $12.00 M Economic Adjustment Assistance $50.06 M $50.06 M $42.00 M $47.00 M + $5.00 M Grant Program for Small Businesses $1.00 M $1.00 M $1.00 M Eliminated - $1.00 M Technical Assistance $12.00 M $12.00 M $12.00 M $12.00 M No change Research and Evaluation $1.50 M $1.50 M $2.00 M $ 2.00 M No change Trade Adjustment Assistance For Firms $15.80 M $15.80 M $15.00 M $ M No change Regional Innovation Strategies and Sec. 27 Science Parks Loan Guarantees New $0.00 M $0.00 M $15.00 M $25.00 M M *Disaster Assistance *$ M $0.00 M $0.00 M $0.00 M No change Salaries And Expenses $37.50 M $37.50 M $37.00 M $38.00 M + $1.00 M MARCH

40 U.S. Department of Commerce s Economic Development Administration Annual Funding for EDA Has Been Steadily Declining FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 President's Budget MARCH

41 U.S. Department of Commerce s National Telecommunications and Information Administration National Telecommunications and Information Administration Highlights New Spectrum Monitoring System: The Budget proposes $8 million for NTIA to develop spectrum monitoring system in 10 metropolitan areas to measure spectrum usage patterns with goal of identifying and determining feasibility of potential repurposing opportunities Broadband Technology Opportunities Program (BTOP): As part of the American Recovery and Reinvestment Act (2009), $4 billion was provided to deploy broadband and promote adoption in underserved areas. No new funding was proposed for FY 2015, but NTIA will continue to monitor and provide oversight of active projects State and Local Implementation Fund: As part of the Middle Class Tax Relief and Job Creations Act (2012), $135 million in grants was provided to states and localities to plan for the build out of FirstNet, the nationwide broadband network for first responders. Proceeds from spectrum auctions through the Public Safety Trust Fund will reimburse these costs Repurposing Spectrum: NTIA will continue to evaluate options for repurposing spectrum for broadband use in support of Administration s goal of making 500 MHZ of spectrum available for wireless broadband use MARCH

42 U.S. Department of Education Department of Education Highlights NEW Early Childhood Development Initiative: The Budget again proposes a new Pre-School for All program of $75 billion over 10 years; $1.3 billion in FY 2015 New competitive Preschool Development Grants to states funded at $500 million to implement high-quality pre-k programs or expand existing ones Would be funded by an increase on the cigarette tax from just over $1 per pack to $1.95 per pack and indexed for inflation annually; other tobacco product taxes would also increase but the amount is not specified Grants for Infants and Families, which serve children with disabilities from birth to age 2 would receive $441.8 million, a $3.3 million increase, and Preschool Grants, which serve children with disabilities ages 3-5, would receive level funding at $353.2 million Elementary and Secondary Education Grants for Disadvantaged Children (Title I): Would be level funded at $14.34 billion; Career and Technical Education (vocational education) would be funded at $1.11 billion Individuals with Disabilities Education Grants to States (special education): Would increase by $100 million, for a total of $11.57 billion Pell Grants: Would increase by $270 million, to $29.17 billion. The increase is in the mandatory portion of the program, which would be funded at $6.39 billion Reorganization: The Budget proposes to reorganize the Science, Technology, Engineering and Mathematics (STEM) education programs into one STEM Innovation Initiative funded at $319.7 million, an increase of $170 million MARCH

43 U.S. Department of Energy Department of Energy Highlights Energy Efficiency and Renewable Energy (EERE): $2.32 billion for FY 2015, an of increase of $416 million above FY 2014 Includes funding in EERE to help state and local leaders move forward with policies that promote alternative fuel vehicles, renewable energy and energy efficiency Nuclear Energy: $ million, $24.99 million below FY 2014 Weatherization: $ million, $53.71 million above FY 2014 Fossil Energy Research and Development (carbon capture and storage and natural gas): $475 million, $87.43 million below FY 2014 Reforms: The Budget proposes to repeal $4 billion in oil, gas and other fossil fuel subsidizes to focus on the Administration s clean energy priorities New Energy Security Trust Fund: The Budget proposes to use oil and gas development revenue to create a $2 billion (over 10 years) Energy Security Trust Fund to research and develop cost-effective alternatives to reduce the nation s dependence on foreign oil Grid Modernization: The Budget proposes A Race to the Top for Energy Efficiency and Grid Modernization (one-time funding of $200 million) that would provide incentives for States to modernize their electricity grids, reduce energy waste and support local level resilience planning MARCH

44 U.S. Department of Energy Department of Energy Energy Efficiency and Renewable Energy (EERE) FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted $ 1, M $1, M $1, M $2, M +$ M Bioenergy Technologies 0 0 $232.29M $ M +$20.91 M Hydrogen and Fuel Cell $ M $95.84 M $92.93 M $92.98 M +$0.05 M Solar Energy $ M $ M $ M $ M +$25.25 M Wind Energy $93.25 M $86.13 M $88.13 M $ M +$26.87 M Water Power $58,78 M $54.69 M $58.56 M $62.50 M +$3.94 M Geothermal Technologies $37.86 M $35.02 M $45.77 M $61.50 M +$15.73 M Electricity Delivery and Energy Reliability $ M $ M $ M $ M +$32.76 M Nuclear Energy $ M $ M $ M $ M -$24.99 M Weatherization $68.00 M $ M $ M $ M +$53.71 M Fossil Energy R&D $337.1 M $ M $ M $ M -$87.43 M MARCH

45 U.S. Department of Health and Human Services County Health Priorities Substance Abuse and Mental Health Services Administration (SAMHSA) Community Mental Health Services Block Grant: The Budget proposes $484 million, level with FY 2014 Substance Abuse Prevention and Treatment Block Grant: The Budget proposes $1.82 billion, level with FY 2014 Prevention and Public Health Fund $1 billion in mandatory funding available in FY 2015, level with FY 2014 If Congress does not allocate, HHS has discretion to award funding Section 317 Immunization Program: $160.3 million proposed, $69.4 million above FY 2014 Epidemiology and Laboratory Capacity Grants: $40 million proposed, level with FY 2014 Preventive Health and Health Services Block Grants: Funding eliminated, $160 million allocated in FY MARCH

46 U.S. Department of Health and Human Services U.S. Department of Health and Human Services Centers for Disease Control and Prevention FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted Immunization and Respiratory Disease $ M $ M $ M $ M + $3.00 M HIV/AIDS, Viral Hepatitis, STDs and TB Prevention $1, M $1, M $1, M $1, M + $55.00 M Chronic Disease Prevention and Health Promotion $ M $ M $ M $ M - $ M Environmental Health $ M $ M $ M $ M + $8.00 M Injury Prevention and Control $ M $ M $ M $ M + $52.00 M Preventive Health and Health Services Block Grant $80.00 M $79.00 M $ M $0.00 M Eliminated Community Prevention Grant (New in FY 2014) N/A N/A $80.00 M $80.00 M No change State and Local Preparedness and Response Capability $ M $ M $ M $ M - $31.00 M National Institutes of Health National Institute of Mental Health $1, M $1, M $1, M $1, M - $6.00 M National Institute on Drug Abuse $1, M $ M $1, M $1, M - $2.00 M National Institute on Alcohol Abuse and Alcoholism $ M $ M $ M $ M No change National Institute on Minority Health and Health Disparities $ M $ M $ M $ M No change Substance Abuse and Mental Health Services Administration Community Mental Health Services Block Grant $ M $ M $ M $ M No change Substance Abuse Prevention and Treatment Block Grant $1, M $1, M $1, M $1, M No change MARCH

47 U.S. Department of Health and Human Services FY 2012 FY 2013 FY 2014 U.S. Department of Health and Human Services (cont.) FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted Health Resources and Services Administration Community Health Centers $1, M $1, M $1, M $1, M - $ M Community Health Centers (ACA mandatory) $1, M $1, M $2, M $3, M + $1, M Maternal and Child Health Block Grant $ M $ M $ M $ M No change Healthy Start $ M $99.00 M $ M $ M No change Ryan White HIV/AIDS Program Emergency Relief - Part A $ M $ M $ M $ M No change Comprehensive Care Part B $1, M $1, M $1, M $1, M No change Early Intervention Part C $ M $ M $ M $ M + $79.00 M Children, Youth, Women and Families Part D $77.00 M $73.00 M $75.00 M $0.00 M (consolidated to Part C) - $75.00 M Education and Training Centers Part F $35.00 M $33.00 M $34.00 M $34.00 M No change Dental Services Part F $13.00 M $12.00 M $13.00 M $13.00 M No change Rural Health Outreach Grants $56.00 M $53.00 M $57.00 M $57.00 M No change Rural Hospital Flexibility Grants $41.00 M $39.00 M $41.00 M $26.00 M - $15.00 M MARCH

48 U.S. Department of Health and Human Services 2,000 Substance Abuse Prevention and Treatment Block Grant 1,600 1, FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 President's Budget MARCH

49 U.S. Department of Health and Human Services Administration for Community Living (Formerly the Administration on Aging) Total program would be funded at $2.06 billion: $35 million below FY 2014 Home and Community-Based Supportive Services: $348 million, level funding Nutrition Services: $815 million, level funding Preventive Health Services: $20 million, level funding Family Caregiver Support Services: $146 million, level funding Senior Community Service Employment: $380 million, $54 million below FY 2014 The President's Budget again proposes to move the program from the Department of Labor to the HHS Administration for Community Living New Elder Justice Initiative: The Budget proposes $25 million develop a national Adult Protection Services (APS) data system and develop national APS standards, which currently vary widely among states MARCH

50 U.S. Department of Health and Human Services FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted Administration for Community Living (formerly Administration on Aging) $2, M $2, M $2, M $2, M - $35.00 M Supportive Services and Senior Centers $ M $ M $ M $ M No change Nutrition Services (Congregate Meals) $439.9 M $ M $ M $ M - $1.00 M Nutrition Services (Home Delivered Meals) $ M $ M $ M $ M No change Nutrition Services Incentives Program $ M $ M $ M $ M + $2.00 M National Family Caregivers Support $ M $ M $ M $ M No change Protection of Vulnerable Older Americans $45.99 M $35.00 M $33.00 M $58.00 M + $25.00 M Preventive Health Services $20.94 M $20.00 M $20.00 M $20.00 M No change Aging Network Support Activities $7.87 M $7.00 M $7.00 M $7.00 M No change MARCH

51 U.S. Department of Health and Human Services Administration for Children and Families Social Services Block Grant (SSBG): The Budget would restore SSBG funding to $1.7 billion, an increase of $44 million Child Care and Development Fund: $6.08 billion, $807 million above FY 2014; the funding would be split into $3.66 billion for the entitlement program and $2.41 billion for the discretionary program. It also would target $200 million for quality, health and safety improvement grants Community Services Block Grant (CSBG): $350 million, $324 million below FY 2014 Head Start: $8.86 billion, $270 million above FY 2014 Includes $650 million, an increase of $150 million to expand the newly created Early Head Start and Child Care Partnerships Low Income Home Energy Assistance Program (LIHEAP): $2.8 billion, a cut of $875 million; this includes $200 million for a contingency fund, which was not included in the FY 2014 appropriations Temporary Assistance for Needy Families Block Grant (TANF): $17.35 billion, an increase of $2 million. Would include two significant program changes: Would prohibit states from using non-governmental third party expenses to meet their Maintenance of Effort requirements Would replace the Contingency Fund with a Pathways to Jobs initiative to support work opportunities through subsidized employment for low income parents, guardians and youth, including summer jobs. The program is based on the expired TANF Emergency Contingency Fund MARCH

52 U.S. Department of Health and Human Services Administration for Children and Families FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted Community Service Block Grant $ M $ M $ M $ M - $ M Community Services Discretionary Rural Community Facilities $29.94 M $4.98 M $28.00 M $5.00 M $30.00 M $6.00 M $0.00 M $0.00 M Eliminated Eliminated Temporary Assistance for Needy Families (TANF) $16, M $17, M $17, $17, M + $2.00 M Social Services Block Grant (SSBG) $1, M $1, M $1, M $1, M + $44.00 M Head Start $7, M $7, M $8, M $8, M + $ M Low Income Home Energy Assistance Program Formula Grants $3, M $3, M $3, M $2, M - $ M Contingency Fund $0.00 M $0.00 M $0.00M $ M + $ M Child Care and Development Block Grants Entitlement to States Discretionary Grants $2, M $2, M $2, M $2, M $2, M $2, M $3, M $2, M + $ M + $57.00 M Refugee Assistance $ M $ M $1, M $1, M No change MARCH

53 U.S. Department of Health and Human Services 800 Community Services Block Grant (CSBG) MARCH

54 U.S. Department of Homeland Security Federal Emergency Management Agency State and Local Programs: $2.22 billion, $100 million above FY 2014 Similar to last year s proposal, the President s FY2015 Budget proposes to consolidate current grant programs (except Emergency Management Performance Grants and Firefighter Assistance Grants) into a new National Preparedness Grant Program (NPGP) FEMA has submitted legislative language to implement NPGP National Preparedness Grant Program (NEW) Requests $1.04 billion for FY 2015 State-centric application and administration of DHS State and Local Grant Programs Would expand definition of local unit of government to include port authorities, transit agencies, for-profit organizations and non-profit organizations MARCH

55 U.S. Department of Homeland Security Federal Emergency Management Agency Emergency Management Performance Grants: $350 million, level with FY 2014; excluded from National Preparedness Grant Program consolidation Firefighters Assistance Grants: $670 million, $10 million below FY 2014; excluded from National Preparedness Grant Program consolidation New Opportunity, Growth and Security Initiative would support: New $400 million in competitive grants to state, local and tribal governments through the pre-disaster mitigation program Additional $300 million for the National Preparedness Grant Program to develop, sustain and leverage state, local and tribal governments core capabilities New Training Partnership Grants The Budget proposes $60 million to provide grants to develop and deliver innovative training programs that address high priority national homeland security training needs MARCH

56 U.S. Department of Homeland Security FEMA State and Local Programs FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted State and Local Grants* $2, M $1, M $1, M 1, M 2, M M National Preparedness Grant Program n/a n/a n/a n/a 1, M New program Urban Area Security Initiative (UASI) $ M No set amount* $ M M Consolidated Consolidated State Homeland Security Grant (SHSGP) $ M No set amount* $ M M Consolidated Consolidated Citizen Corps $9.98 M No set amount* No set amount** n/a n/a n/a Regional Catastrophic Preparedness $14.97 M $0.00 M No set amount** n/a n/a n/a Port Security Grants $ M No set amount* $97.50 M M Consolidated Consolidated Rail and Transit Security Assistance $ M No set amount* $97.50 M M Consolidated Consolidated Emergency Management Performance Grants $ M $ M $ M M M No change Firefighters Assistance Grants $ M $ M $ M M M M Training Partnership Grants $0.00 M $0.00 M $60.00 M n/a M M First Responder Stabilization Fund $0.00 M $0.00 M $0.00 M n/a n/a n/a FEMA Mitigation Programs Disaster Relief $2, M $7, M $7, M 6, M 7, M M Pre-Disaster Mitigation Grants $50.00 M $35.50 M $35.72 M M M Flood Map Modernization Fund $ M $ M $ M M M *DHS Secretary given discretion for funding levels **The FY13 CR provided $ million for 14 separate accounts, including Citizen Corps and Regional Catastrophic Preparedness ***No funding is requested; the program will operate from unobligated prior year appropriated balances MARCH

57 U.S. Department of Housing and Urban Development HUD Community Development Community Development Block Grant (CDBG): The Budget would cut CDBG formula grants by $200 million, from $3.02 billion in FY 2014 to $2.8 billion This is 37% below FY 2010, 17% below FY 2011 and 28% below FY 2012 Maintains 20% for administrative costs Reforms: The President s Budget proposes a series of reforms to strengthen the CDBG program, help grantees target funding resources to areas of greatest need, enhance program accountability, synchronize critical program cycles with the consolidated plan cycle, reduce the number of small grantees, and provide more options for regional coordination, administration and planning MARCH

58 U.S. Department of Housing and Urban Development HUD Community Development 2, , , , , , HOME Investment Partnerships The Budget would cut the HOME program by $50 million (to $950 million) from $1 billion in FY 2014 Includes up to $10 million set aside for Self-Help Homeownership Opportunity Program (SHOP) grant program Reforms: The Budget proposes statutory changes to establish minimum grant threshold for HOME and eliminates the community grandfathering provision for entitlement communities HOME Investment Partnership Program FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 President's MARCH Budget

59 U.S. Department of Housing and Urban Development HUD Community Development NEW Project Rebuild program: $15 billion is proposed for the redevelopment of abandoned and foreclosed commercial properties $10 billion to state and local governments via formula $5 billion for competitive grants to governmental entities and non-profits NEW HUD Capacity Building Program: $20 million would provided for grants this program was previously funded as part of the Self-Help and Homeownership Opportunity Program Homeless Assistance Grants: $2.4 billion, $300 million above the FY 2014 level HUD VASH: $75 million for 10,000 new vouchers for homeless veterans, level with FY 2014 Housing Trust Fund: The Budget proposes $1 billion in mandatory funds to expand supply of housing for extremely low income families MARCH

60 U.S. Department of Housing and Urban Development HUD Community Development Under the President s proposed Opportunity Growth and Security Initiative, several HUD programs would see changes or funding increases: New Integrated Planning and Investment Grants program (formerly Sustainable Communities Initiative) The initiative is a partnership of HUD, DOT, EPA and other federal agencies $75 million under HUD for expanding job opportunities and improving quality of life by providing incentives to regions and communities to align planning efforts, invest public and private resources to attract businesses, modernize land use and building codes, attract private capital for community revitalization efforts, and sponsor robust community engagement efforts Language is included to streamline HUD and DOT joint grant solicitations and implementation efforts Additional $280 million for the Choice Neighborhoods Fund, funded at $90 million in FY The President also requests $120 million in regular funding MARCH

61 U.S. Department of the Interior Since its establishment in 1976, the Payment in Lieu of Taxes Program (PILT), has provided funding to more than 1,800 counties in 49 states to offset losses in tax revenues due to the presence of tax exempt federal land in their jurisdictions. NACo led efforts to reform PILT in 2008, from a discretionary program to a fully funded mandatory entitlement program and secured mandatory funding for PILT from FY 2008-FY For FY 2013 and FY 2014, Congress provided full mandatory funding for the program, and the President s FY 2015 Budget proposes another year of mandatory funding, at $442 million. NACo continues to urge lawmakers to provide full funding for PILT in FY 2015 and beyond. MARCH

62 U.S. Department of the Interior FY 2012 FY 2013 FY 2014 FY 2015 President's Budget FY 15 President s Budget vs. FY 14 Enacted U.S. Department of the Interior Payment in Lieu of Taxes Program (mandatory) $ M $ M $ M $ M + $17.00 M Land and Water Conservation Fund $ M $ M $ M $ M + $ M Geothermal Lease Revenues, Payments to Counties $3.72 M $4.08 M $4.00 M $0.00 M - $4.00 M National Wildlife Refuge Revenue Sharing Program $13.98 M $13.23 M $13.22 $0.00 M Eliminated MARCH

63 U.S. Department of the Interior Land and Water Conservation Fund (LWCF): The Budget proposes a permanent $900 million mandatory funding level for LCWF beginning in FY 2016 The Budget proposes increasing LWCF funding to $900 million for FY 2015, an increase of $594 million over FY 2014 enacted levels Geothermal Lease Revenues, Payments to Counties: The Budget proposes the repeal Section 224(b) of the Energy Policy Act of 2005, which would permanently discontinue historic 25% payments to counties from federal geothermal leasing revenues and would instead provide 50% to states and 50% to the U.S. Treasury This would result in a loss of $4 million to counties in FY 2015 and $48 million over 10 years National Wildlife Refuge Revenue Sharing Program: The Budget proposes to eliminate discretionary funding to counties from the National Wildlife Refuge Revenue Sharing Fund. An estimated $8 million in permanent receipts would remain available to share with county governments Refuge revenue sharing payments have historically offset local tax loss due to federal land ownership MARCH

64 U.S. Department of Justice State and Local Law Enforcement Assistance Highlights State Criminal Alien Assistance Program: Funding eliminated, funded at $180 million in FY 2014 (NACo Priority Program) Byrne Memorial Justice Assistance Grants (JAG): $376 million, level with FY 2014 funding Juvenile Accountability Block Grant (JABG): $30 million, no funding was provided in FY 2014 New Byrne Incentive Grants: The Budget proposed $15 million for a new initiative to encourage states and localities to use formula funds (and state and local funds) to implement proven public safety strategies MARCH

65 U.S. Department of Justice State and Local Law Enforcement Assistance Highlights NEW Specialty Courts program: The President s Budget proposes to consolidate the Mentally Ill Offender Treatment and Crime Reduction Act Program (MIOTCRA), veterans treatment courts and the drug courts into one program This new program would be funded at $44 million, which is $9 million less than the combined amounts for the three separate programs in FY 2014 (drug courts were funded at $41 million, MIOTCRA at $8 million and Veterans Treatment Courts at $4 million, for a total of $53 million) Second Chance Act Program: The Budget proposes $115 million, $47 million above the FY 2014 level of $68 million $10 million for Smart Probation Program for states, localities and tribes to develop comprehensive, innovative probation and parole supervision programs $5 million for a new Children of Incarcerated Parents Demonstration Grant Program Up to $30 million can be used for performance-based-awards for Pay-for-Success projects MARCH

66 U.S. Department of Justice State and Local Law Enforcement Assistance FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted Department of Justice State and Local Law Enforcement Assistance $1, M $1, M $1, M $1, M $ 1, M - $ M Byrne Memorial Justice Assistance Grants (Byrne/JAG) $ M $ M $ M $ M $ M + $31.5 M Byrne Competitive $33.00 M $13.00 M $18.00 M $14.00 M $15.00 M + $1.00 M Byrne Incentive n/a n/a n/a n/a $15.00 M + $15.00 M Byrne Innovation n/a $14.00 M $14.00 M $11.00 M $29.50 M + $18.50 N State Criminal Alien Assistance Program (SCAAP) Second Chance Act Programs and Research $ M $ M $ M $ M $0.00 M - $ M $83.00 M $63.13 M $69.00 M $68.00 M $ M + $47.00 M Specialty Courts (NEW) N/A N/A N/A N/A $44.00 M New program Mentally Ill Offender Act Program $9.00 M $9.00 M $9.00 M $8.00 M Drug Courts $35.00 M $41.00 M $39.00 M $41.00 M Merged into new Specialty Courts Merged into new Specialty Courts N/A N/A Prison Rape Prevention and Prosecution Program $13.00 M $11.00 M $12.00 M $13.00 M $10.00 M - $3.00 M MARCH

67 U.S. Department of Justice COPS, Juvenile Justice and Violence Against Women Community Oriented Policing Services (COPS): $274 million, funded at $214 million in FY 2014 Hiring and Grant Initiatives: $247 million, funded at $180 million in FY 2014 Anti-Methamphetamine Task Forces: Eliminated, funded at $8 million in FY 2014 Comprehensive School Safety Program (in collaboration with Dept. of Education): $75 million, level with FY 2014 Juvenile Justice Programs: $300 million, funded at $255 million in FY 2014 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted Community Oriented Policing Services (COPS) $ M $ M $ M $ M $ M + $93.43 M Hiring $ M $ M $ M M $ M + $66.43 M Juvenile Justice Programs $ M $ M $ M $ M $ M + $43.53 M JJDP Title V Delinquency Prevention $54.00 M $18.00 M $18.00 M $15.76 M $42.00 M + $ M Juvenile Accountability Block Grant $46.00 M $28.00 M $28.00 M $0.79 M $30.00 M + $29.21 M Community-Based Violence Prevention Initiative Violence Against Women Programs $8.00 M $7.00 M $7.00 M $6.00 M $18.00 M + $12.00 M $ M $ M $ M $ M $ M + $5.39 M MARCH

68 U.S. Department of Labor County Officials Play An Important Role In Workforce Development: The leadership role of local elected officials is essential to maximizing WIA s impact in state and local jurisdictions through collaboration with state and local Workforce Investment Boards (WIBs) and setting policy for the workforce system to achieve broader human capital and economic development goals MARCH

69 U.S. Department of Labor Labor and Employment Highlights Overall DOL funding: Provides $11.8 billion in discretionary funding for the U.S. Department of Labor, a slight decrease from FY 2014 level of $12 billion Would raise the federal minimum wage: From $7.25 to $10.10 per hour Would provide level funding for Workforce Investment Act (WIA) Title I Employment and Training Grants at $2.8 billion in FY 2015: Adult Employment and Training: $766 million, level with FY 2014 Dislocated Worker Employment and Training: $1.2 billion, level with FY 2014 Youth Employment and Training: $820.4 million, level with FY 2014 Job Corps: Would provide level funding at $1.69 billion Would maintain the set-aside for Governors in WIA Title I programs at 8.75% Provides $60 million for the Workforce Innovation Fund to provide nationally competitive grants to states and localities for the implementation of new service delivery evidence-based strategies and reforms; $13 million above the FY 2014 level President again proposes to transfer the Senior Community Service Employment Program (SCSEP) from DOL to the U.S. Department of Health and Human Services Administration for Community Living MARCH

70 U.S. Department of Labor New FY 2015 DOL Proposals: NEW WIA Incentive Grants: The Budget would provide $80 million for expanded and enhanced incentive to reward those state and tribal governments that exceed levels of performance for subpopulations facing significant barriers to employment, such as long-term unemployed, disconnected youth, individuals with disabilities and veterans. No more than 15 grants would be awarded in a program year NEW Sector Strategies: The President s Budget would provide $15 million for grants to States, consortia of states or regional partnerships to develop employment and training strategies targeted to particular in-demand industry sectors in regional economies. Goal of grants is to further collaboration between WIBs and businesses and the resulting partnerships to ensure that businesses workforce needs are being met and that the longterm unemployed and other targeted populations will receive the training they need for career in in demand industry sectors NEW Career Pathways (NCP) Program: The President s Budget proposes to consolidate the Trade Adjustment Assistance for Workers (TAA) and Workforce Investment Act (WIA) Dislocated Workers program into a single fund; $3.7 billion for FY 2015 and would require legislative authorization MARCH

71 U.S. Department of Labor New FY 2015 DOL Proposals: NEW Back to Work Partnerships for Long-term Unemployed: $2 billion in FY 2015 to support partnerships between businesses, education and training providers to 1 million longterm unemployed workers for new jobs NEW Summer Jobs Plus Program for Youth: $1 billion for FY 2015 to fund summer and year-round jobs for 600,000 youth and innovation grants to improve skills and career options for disadvantaged youth NEW Community College to Career Fund: The President s Budget would provide $6 billion over 4 years ($1.5 billion for FY 2015) to provide competitive grants to support state and community college partnerships with businesses to train workers in high-growth, in-demand industries Jointly administered by the U.S. Department of Labor and U.S. Department of Education MARCH

72 U.S. Department of Labor FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted Employment and Training Administration $3, M $3, M $3, M $3, M + $ M WIA Title 1 Employment and Training Grants to States WIA Adult Employment and Training $ M $ M $ M $ M No change WIA Dislocated Worker Employment and Training $1, M $1, M $1, M $1, M No change WIA Youth Employment and Training $ M $ M $ M $ M No change Federally Administered Programs Dislocated workers Assistance National Reserve $ M $ M $ M $ M No change Native American Programs $47.56 M $47.85 M $46.08 M $46.08 M No change Migrant and Seasonal Farmworker Program $84.29 M $84.80 M $81.90 M $81.90 M No change Youthbuild $79.68 M $80.17 M $77.54 M $77.54 M No change Workforce Innovation Fund $49.90 M $50.20 M $47.30 M $60.00 M + $12.70 M Sector Strategies (Legislative Proposal) $15.00 M + $15.00 M National Activities Pilots, Demonstrations and Research $ 6.61 M $6.64 M $0.00 M $0.00 M No change Reintegration of Ex-Offender Activities $ M $80.72 M $80.08 M $80.08 M No change Workforce Data Quality Initiative $6.40 M $6.50 M $6.00 M $6.00 M No change Evaluation $9.58 M $9.62 M $0.00 M $0.00 M No change WIA Incentive Grants (Legislative Proposal) $80.00 M + $80.00 M Job Corps $1, M $1, M $1, M $1, M No change New Career Pathways Program (Legislative Proposal) $3, M + $3, M Pathways Back to Work Fund $12, M $12, M + $12, M Reemployment NOW $4, M $4, M + $4, M Veterans Employment and Training $ M $ M $ M $ M No change MARCH

73 U.S. Department of Labor WIA Title I Grants for Employment and Training Services Adult Youth Dislocated Worker MARCH

74 U.S. Department of Transportation Department of Transportation Highlights Proposes a total of $90.3 billion in discretionary and mandatory funding for U.S. DOT, an increase of 25.2% or $18 billion over the FY 2014 level Proposes a $302 billion four-year reauthorization of the nation s surface transportation programs, an $87 billion increase from MAP-21, which includes: $72 billion over four years for transit ($11 billion for Capital Investment Grants plus $5 billion per year for bus and rail transit state of good repair) $199 billion over four years for highways, including a new fix-it-first program $6.7 billion over four years for highway safety programs $19 billion over four years for rail programs, including $7 billion for new and upgraded passenger rail, and $5 billion for fix-it-first projects $5 billion over four years for an expanded TIGER program $4 billion in additional funding for a Fixing and Accelerating Surface Transportation (FAST) competitive grant program for transformative improvements and investments $4 billion over four years for the TIFIA program $10 billion over four years for a new multi-modal freight grant program $2.2 billion for a new bus rapid transit program $400 million for workforce development MARCH

75 U.S. Department of Transportation Department of Transportation Highlights The President s Budget proposes to devote $150 billion from tax reform to supplement current Highway Trust Fund revenues National Infrastructure Bank proposed at $10 billion to leverage private and public capital to support infrastructure projects Proposes $500 million in FY 2105 for FAST program, that will provide competitive grants to projects that encourage innovative transportation solutions MARCH

76 U.S. Department of Transportation U.S. Department of Transportation Federal Highway Administration FY 2011 FY 2012 FY 2013 FY 2014 President s FY 2015 Budget FY 15 President s Budget vs. FY 14 Enacted Federal-Aid Highways $41, M $39, M $39, M $40, M $47, M + $7, M Federal Transit Administration Formula/Bus Grants $8, M $8, M $8, M $8, M $13, M + $5, M FTA Capital Investment Grants (New Start and Small Starts) Federal Aviation Administration $1, M $1, M $1, M $1, M $2, M + $ M Airport Improvement Grants (Grants-In-Aid to Airports) $3, M $3, M $3, M $3, M $2, M - $ M Small Community Air Service Program $15.00 M $14.00 M $6.00 M $5.00 M $0.00 M - $5.00 M Essential Air Service (Office of the Secretary) $ M $ M $ M $ M $ M - $9.00 M Federal Rail Road Administration Rail Service Improvement Program $0.00 M $0.00 M $0.00 M $0.00 M $2, M + $2, M Amtrak/Current Rail Service $1, M $1, M $1, M $1, M $2, M + $1, M Office of the Secretary TIGER $ M $ M $ M $ M $ M + $11.00 M TIFIA $ M $ M $ M $1, M $1, M No change New Initiatives National Infrastructure Bank $0.00 M $0.00 M $0.00 M $0.00 M $10, M + $10, M Immediate Investments in Critical Infrastructure $0.00 M $0.00 M $0.00 M $0.00 M $4, M + $4, M Fixing and Accelerating Surface Transportation (FAST) $0.00 M $0.00 M $0.00 M $0.00 M $ M + $ M MARCH

77 U.S. Environmental Protection Agency EPA Highlights Clean Water State Revolving Fund (SRF): The Budget proposes $1.02 billion in FY 2015, a cut of $430 million 20% of funds must be used by the state for green infrastructure projects Drinking Water SRF: The President s Budget proposes $757 million, a cut of $150 million 20% of funds must be used for projects that address green infrastructure, water or energy efficiency improvements Brownfields Infrastructure Projects: $85 million, a cut of $5 million State and Local Air Quality Management: $243 million, an increase of $15 million Diesel Emissions Reduction Grant Program: Funding eliminated, $20 million in FY 2014 Climate Change: The President s Budget continues to focus on the potential impacts of climate change, including research and development and helping communities adapt to changes this includes regulatory efforts to propose emission standards for existing power plants by June 1, 2014 and finalize by June 1, 2015 Municipal Separate Storm Sewer Systems (MS4 s): The Budget proposes $3.5 million to help new permit holders to help navigate the permit process MARCH

78 U.S. Environmental Protection Agency Environmental Protection Agency Clean Water State Revolving Loan Funds Safe Drinking Water State Revolving Loan Funds Brownfields Infrastructure Projects Diesel Emissions Reduction Grant Program FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 President s Budget FY 15 President s Budget vs. FY 14 Enacted $1, M $1, M $1, M $1, M $1, M - $ M $ M $ M $ M $ M $ M - $ M $49.49 M $94.85 M $89.85 M $90.00 M $85.00 M - $5.00 M $60.00 M $29.95 M $24.95 M $20.00 M $0.00 M Eliminated Brownfields Grants for States $51.18 M $49.31 M $48.38 M $47.57 M $47.75 M M Nonpoint Source (Sec. 319) $ M $ M $ M $ M $ M - $5.65 M State and Local Air Quality Management Water Pollution Control Grants (Sec. 106) $ M $ M $ M $ M $ M + $15.01 M $ M $ M $ M $ M $ M + $18.36 M MARCH

79 U.S. Environmental Protection Agency 1, Drinking Water State Revolving Loan Funds (SRF) MARCH

80 U.S. Environmental Protection Agency 2, , , , , , , , Clean Water State Revolving Loan Funds FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 President's Budget MARCH

81 Budget Resources Online Budget Resources OMB Budget Resources: FY 2015 Budget FY 2015 Appendix FY 2015 Terminations, Reductions and Savings Federal Agency Websites: FY 2015 Budget in Brief FY 2015 Congressional Budget Justification FY 2015 Budget Fact Sheets MARCH

82 Questions? Contact Us! For questions or more information, feel free to contact us Matthew Chase, NACo Executive Director Deborah Cox: Legislative Director or Paul Beddoe: Health, Deputy Legislative Director or Michael Belarmino: Finance & Intergovernmental Affairs or Daria Daniel: Community and Economic Development or Yejin Jang: Telecommunications and Technology, DHS/FEMA or Jessica Monahan: Transportation or Arlandis Rush: Justice, Public and Safety or Marilina Sanz: Human Services and Education or Arthur Scott: Agriculture and Rural Affairs or Hadi Sedigh: Workforce and Pensions or Julie Ufner: Environment, Energy & Land Use or NACo was named one of nine remarkable associations in the United States after a four-year study conducted by the American Society of Association Executives and The Center for Association Leadership because of its commitment to members and purpose