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What States Should Know About the President’s FY 2015 Budget

What States Should Know About the President’s FY 2015 Budget. March 11, 2014. Federal Funds Information for States. It adheres to the discretionary spending caps set in the BBA. The BBA amended the BCA for FYs 2014 and 2015.

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What States Should Know About the President’s FY 2015 Budget

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  1. What States Should Know About the President’s FY 2015 Budget March 11, 2014 Federal Funds Information for States

  2. It adheres to the discretionary spending caps set in the BBA • The BBA amended the BCA for FYs 2014 and 2015. • The Senate plans to work off these same levels, foregoing adoption of a FY 2015 budget resolution. • The House plans to adopt a FY 2015 budget resolution, notwithstanding the fact that the BBA made it unnecessary. It is not known whether it will adhere to or reduce the BBA discretionary spending levels.

  3. It repeals sequestration of mandatory programs included in the BCA

  4. It proposes a “growth initiative” that would raise FY 2015 spending by $56B

  5. It redirects the $612M TANF Contingency Fund • TANF Contingency Fund set to expire 9/30/14 • Extends fund, but redirects for other purposes • $602M for new Pathways to Jobs initiative • Support work opportunities through subsidized employment for low-income parents and youth • $10M for technical assistance, research, and evaluation

  6. It recycles many proposals from prior years • ESEA reauthorization • Early childhood initiative funded by tobacco taxes • Consolidation of WIA Dislocated Worker and TAA into new program • UI trust fund loan provisions • FEMA grant restructuring • Tax and bond proposals

  7. It recycles many proposals from prior years • Child support and fatherhood initiative • Variety of proposals to improve collections and increase program effectiveness; most funding occurs in future years • Medicaid/CHIP • Extends Medicaid QI and TMA through CY 2015 • Extends CHIPRA performance bonuses; express lane eligibility • Extends Medicaid primary care payment increase, expands to mid-level providers • Program savings • Reduce waste, fraud, and abuse • Limit Medicaid reimbursement of durable medical equipment • Improve Medicaid drug rebate and payment policies

  8. It includes a 4-year reauthorization of the highway program • $302B over four years • Reclassifies all surface transportation program grants as mandatory and exempt from sequestration • Establishes Transportation Trust Fund • Highways account • Mass transit account • Multimodal account • Rail account • Transfers $78B in general funds over four years • Paid in part by unspecified corporate tax reform ($150B)

  9. It addresses ACA issues, funding, and programs in various ways

  10. It addresses ACA issues, funding, and programs in various ways

  11. It level funds a large number of major grant programs, with exceptions listed

  12. It level funds a large number of major grant programs, with exceptions listed

  13. It level funds a large number of major grant programs, with exceptions listed

  14. It level funds a large number of major grant programs, with exceptions listed

  15. It transitions from formula grants to competitive grants • New competitive grant proposals: • High School Redesign ($150M) • State Higher Education Performance Fund ($4B) • WIA Incentive Grants ($80M) • Sector Strategies ($15M) • Bridge-to-Work ($2B) • Back to Work Partnerships ($4B) • LIHEAP Energy Burden Reduction Grants ($50M) • Elder Justice Initiative/Adult Protective Services ($25M) • SAMHSA – Peer Professionals ($10M) • CDC/SAMHSA – prescription drug abuse/overdose ($25M)

  16. It transitions from formula grants to competitive grants • New competitive grant proposals: • Fixing and Accelerating Surface Transportation ($1B) • National Freight Infrastructure Program ($500M) • Juvenile Justice Realignment Incentive Grants ($10M) • Edward Byrne Memorial Incentive Grant ($15M) • Project Rebuild Competitive Portion ($5B)

  17. It transitions from formula grants to competitive grants • Competitive carve-outs of existing formula grants: • Improving Teacher Quality State Grants ($20M) • Special Education Part B Grants to States ($100M) • Career and Technical Education State Grants ($100M) • Hospital Preparedness Program ($15M) • Training Partnership Grants ($60M)

  18. Most of it is DOA • Smaller, noncontroversial proposals could be incorporated into various spending bills • Legislative proposals or anything that would have to move through the reconciliation process (e.g., changes to mandatory programs or taxes) will not be addressed

  19. What Next? • House and Senate appropriations leadership vows an “aggressive” timetable: • Markups in May • Floor action over the summer • “Many” bills enacted by October 1

  20. Questions? • Check for updates at www.ffis.org • Almost all states subscribe to FFIS • Contact Carol Ryder for your password and to be added to the e-mail list: ryder@ffis.org, 202-624-5849

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