1 / 15

What if the BCA Sequester is Implemented Next January?

What if the BCA Sequester is Implemented Next January?. HSFO Annual Conference September 12, 2012. Federal Funds Information for States. Overview: Budget Control Act (BCA) of 2011. Three components with potential to affect future funding for state grant programs:

lola
Download Presentation

What if the BCA Sequester is Implemented Next January?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What if the BCA Sequester is Implemented Next January? HSFO Annual Conference September 12, 2012 Federal Funds Information for States

  2. Overview: Budget Control Act (BCA) of 2011 Three components with potential to affect future funding for state grant programs: • Discretionary spending caps w/adjustments (done) • Joint Select Committee on Deficit Reduction (failed) • Sequestration process (January 2, 2013)

  3. The BCA and Looming Sequester • Absent a legislated alternative, a sequester will occur in January 2013 • $984 billion in cuts required over FYs 2013-2021 (roughly $109 billion per year, half from defense and half from nondefense) • Many mandatory and a few discretionary programs are exempt • ATB cuts in FY 2013, different process for FY 2014+

  4. Sequester: What We Don’t Know What is the ATB percentage cut? • CBO estimates 7.8% for nondefense discretionary and mandatory, 10% for defense • OMB estimates 8.2% for nondefense discretionary, 7.6% for nondefense mandatory, 9.4% for defense discretionary • Exact percentage won’t be known until January 2013 (will depend on base subject to sequester)

  5. Sequester: What We Don’t Know How will individual programs be affected? • Percentage reduction applied to FY 2013 funding (annualized level in CR) • OMB has authority to apply exemptions and special rules • Federal law lists programs and activities exempt from sequester (each item identified by budget account) • Federal law establishes special rules for certain programs

  6. Examples: Major Exemptions and Special Rules

  7. Examples: Major Exemptions and Special Rules

  8. Examples: Major Exemptions and Special Rules

  9. Sequester: What We Don’t Know How much discretion do agencies have in implementing sequester? • Virtually none • Some influence over timing (recent ED guidance) Will Congress and the president modify the BCA? • Various proposals, no agreement (explicit legislation required)

  10. Sequester Coverage Status of FFIS-Tracked Programs

  11. Sequester Coverage Status of FFIS-Tracked Funding

  12. Program Areas Most Affected

  13. What We Can Guess About a Sequester

  14. Will Sequester Happen? • Conventional Wisdom: agreeing to postpone the day of reckoning, BUT… • Many other issues at play • May depend on outcome of election • Waiting too long to act could have a major negative impact on economy

  15. The End: Questions? Contact information: Trinity Tomsic 202-624-8577, ttomsic@ffis.org

More Related