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Federal Workforce Development Policy Update. NYATEP 2013 Policy and Research Symposium. Our Vision. We seek an America that grows its economy by investing in its people, so that every worker and every industry has the skills to compete and prosper. Our Mission.
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Federal Workforce Development Policy Update NYATEP 2013 Policy and Research Symposium
Our Vision We seek an America that grows its economy by investing in its people, so that every worker and every industry has the skills to compete and prosper.
Our Mission • We organize broad-based coalitions seeking to raise the skills of America’s workers across a range of industries. • We advocate for public policies that invest in what works, as informed by our members’ real-world expertise. • And we communicate these goals to an American public seeking a vision for a strong U.S. economy that allows everyone to be part of its success.
Three Drivers of Policy Debate • The need for a more highly skilled workforce • Austerity frame (deficit reduction) • Consolidation vs. integration and alignment
Need for a Skilled Workforce • Bipartisan agreement on the problem • Evolved from recovery/jobs focus (so framed as economic growth issue) • Highly partisan debate about what to do to solve the problem
What Has Been Done So Far? • Deficit reduction since 2010: • $1.5T in cuts, largely from discretionary programs (FY 11 appropriations and budget caps) • $0.6T in revenue (fiscal cliff deal) • $0.3T in interest savings • $2.3T in total savings so far
Deficit Reduction Has NOT Been Balanced So Far • For every $1 in revenue increase, we’ve had $2.50 in spending cuts • More spending cuts loom: sequesters, spending caps, FY 14 budget and appropriations
What Still Needs to Be Done? • President Obama wants to “stabilize” the debtwith about $4T in total cuts, through combination of cuts and revenue • House wants much deeper cuts than this—proposed balancing budget in 10 years—with no new revenue
What’s Coming? • Sequester still in place BUT no longer across-the-board cut • Instead, overall non-defense cap lowered by $55B • That means appropriators will decide which programs to cut and which to protect
FY 14 Appropriations Process • House and Senate about $1B apart • House wants to increase defense spending, shift cuts to non-defense programs • House 302(b) Labor-HHS allocation 18.6% below sequester level
Funding Debate Disguised as Policy Debate • Driven by 2011 GAO report • General, bipartisan agreement that there are too many programs • WIA is main vehicle, but will show up again and again (TAA, budget)
Big Picture • Sequesters and budget caps are now current law—set for next eight years unless Congress takes action • Debt ceiling turned back on May 18th • Congress and Administration must find a way out of current cycle of endless fiscal crises
So What’s Going to Happen? • It depends… • How do cuts (including sequester) impact local communities? • Is there pressure on Members of Congress to fix the cuts? • Who’s going to blink first?
Things to Watch Out For • Programs start looking for exemptions—devolves into survival of the (politically) fittest • Flexibility: Give the agencies more wiggle-room to protect certain programs • “Boehner Rule”
Stay Connected • Visit us our website. • Sign up for our member email list. • Follow us on:
Contact Rachel Gragg 202-223-8991, ext. 102 rachelg@nationalskillscoalition.org