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The Busiest Six Weeks of the Year

The Busiest Six Weeks of the Year. NASBO Annual Meeting Wednesday, August 1, 2012 Providence, RI. Federal Funds Information for States. “To Do” List on November 7, 2012. Complete FY 2013 appropriations Address the BCA’s looming sequester Deal with expiring tax provisions

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The Busiest Six Weeks of the Year

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  1. The Busiest Six Weeks of the Year NASBO Annual Meeting Wednesday, August 1, 2012 Providence, RI Federal Funds Information for States

  2. “To Do” List on November 7, 2012 • Complete FY 2013 appropriations • Address the BCA’s looming sequester • Deal with expiring tax provisions • Consider other expiring legislation, authorizations

  3. FY 2013 Appropriations • President’s budget replaced BCA with other tax and spending policies • House budget resolution cut deeper than BCA and included reconciliation • Senate adhered to BCA and did not adopt a budget resolution • Consequently, all three sets of numbers vary (see Jim Martin table).

  4. The BCA and Looming Sequester • Absent a legislated alternative, a sequester will occur in January 2013. • CBO estimates A-T-B cut at 7.8% for domestic discretionary and mandatory, 10% for defense. • Almost 3/4 of grant programs are subject to sequester but less than 20% of grant funding (see VIP Series). • Defense sequester could be more damaging for some states. • What are states doing to prepare?

  5. Expiring Tax Provisions, etc. • Bush-era tax cuts • 2percentage-point payroll tax reduction • AMT “fix” • Other tax provisions, including Child Tax Credit • Also….need to raise the debt limit. • And the biggest question of all: Will gridlock throw economy into a tailspin? Pre-election handling of WARN Act could be telling.

  6. Expiring Program Authorizations • TANF: Must be extended or no funding. • Farm bill: Must be extended or no funding. • ESEA: Absent reauthorization, states are increasingly operating on waivers. • WIA: Streamlining looks possible. • SAFETEA-LU: Has now been authorized through FY 2014 as MAP-21.

  7. What’s the Conventional Wisdom? • For appropriations, a CR until the election, BUT… • For BCA, agreeing to postpone the day of reckoning, BUT… • For expiring tax provisions, a bruising fight, possibly informed by the election. • For authorizations, probably nothing, BUT...

  8. Happy New Year? • For more information, contact: Marcia Howard mhoward@ffis.org www.ffis.org

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