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Posts Tagged ‘budget’

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OMB Releases Sequestration Report

Friday, September 14th, 2012

The Office of Management and Budget (OMB) this afternoon released the OMB Report Pursuant to the Sequestration Transparency Act of 2012, as required by Congress. According to OMB’s estimates, non-exempt nondefense discretionary federal programs will be cut by 8.2 percent if sequestration occurs on January 2, 2013. The report does not get down to the program level, so we do not have official numbers on the amount the Perkins could be cut, but based on our rough estimates, Perkins could be reduced by approximately $92 million. The total cut to Department of Education programs would be $4.113 billion.

OMB’s determination that the cut from sequestration would be 8.2 percent is based on the assumption that FY13 discretionary spending will be at FY12 levels. However, as we told you earlier this week, the 6 month continuing resolution increases FY13 spending 0.612 percent above FY12 levels. Therefore, the final sequestration percentage will likely be slightly different than 8.2 percent.

Nancy Conneely, Public Policy Manager

By admin in Public Policy
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OMB Delays Release of Sequestration Report

Friday, September 7th, 2012

The Office of Management and Budget (OMB) was scheduled to release a report on the impact of sequestration yesterday, as required by the Sequester Transparency Act. However, that did not happen, and it is now looking like it will not be released until late next week. White House Press Secretary Jay Carney had this to say:

“Given the time needed to address the complex issues involved in preparing the report, the administration will be submitting that report to Congress late next week. No amount of planning changes the fact that sequester would have devastating consequences. We need to deal with our fiscal challenges in a balanced way.”

We will let you know when the report is released, and what it has to say about the impact of sequestration on Perkins Act funding.

Nancy Conneely, Public Policy Manager

By admin in Public Policy
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NASDCTEc Webinar: Federal Funding Update: FY 13 and Sequestration

Wednesday, September 5th, 2012

Over the last several years federal funding for many programs, including Perkins, has been slashed. Following this trend of shrinking budgets along with the looming threat of sequestration, Fiscal Year 13 could result in more cuts. Join Nancy Conneely, NASDCTEc’s Public Policy Manager, as she walks you through the federal funding maze. During this webinar you will hear about Fiscal Year 13 federal funding, the Budget Control Act, and sequestration.

When: Tuesday, September 25th at 3 p.m. ET

To register, please go to: https://nasdcte.adobeconnect.com/_a998116607/fedfunding/event/event_info.html

Nancy Conneely, Public Policy Manager

By admin in Webinars
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New Poll Reveals Shifting Views of Public Education

Thursday, August 23rd, 2012

This year’s PDK/Gallup Poll of the Public’s Attitudes Toward the Public Schools shows that the public’s opinion concerning education and funding is shifting. When asked in 1996, whether it was more important to balance the federal budget or improve the quality of education, nearly two thirds of respondents said “improve education.” However, this year 60 percent said that it’s more important to balance the federal budget. Given the state of the economy in 1996 versus today, this shift could be in response to the fiscal crises occurring at all governing levels in recent years.

That being said, the poll also revealed that the public feels that lack of funding is the biggest challenge facing public schools in their communities, with 35 percent of those surveyed citing it as the top challenge, compared with 23 percent a decade ago. Parents, at 43 percent, felt even more strongly that lack of funding is the number one challenge facing public schools.

Nancy Conneely, Public Policy Manager

 

By admin in Public Policy
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Presidential Candidate Mitt Romney Proposes Cutting Education Spending

Thursday, August 9th, 2012

Last week Republican Presidential candidate Mitt Romney released his Plan for a Stronger Middle Class, which lays out his plan for increasing jobs and wages. In it, he proposes giving people greater access to affordable and effective higher education options, and focusing job training programs on skills that align with employment opportunities.

However, Governor Romney’s plan also indicates that as President he would immediately reduce non-defense discretionary spending by five percent. A five percent cut to the Department of Education’s discretionary spending would result in a reduction of $3.4 billion (based on FY12 discretionary appropriations).

The plan also calls for capping federal spending below 20 percent of gross domestic product (GDP). Currently, total federal spending in FY12 is 23.4 percent of GDP. To reduce federal spending to 20 percent of GDP would require an aggregate cut of nine percent per year for the next decade. But since Governor Romney opposes cutting defense spending, as well as cutting Social Security for those 55 and over, that would actually result in cuts of between 29 and 40 percent for remaining programs over the next 10 years, according to the Center on Budget and Policy Priorities. And remember, these potential cuts to non-defense discretionary programs (like education) would be in addition to the cuts and spending caps currently required by the Budget Control Act.

Nancy Conneely, Public Policy Manager

By admin in Public Policy
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Obama Administration Must Release Details of Sequestration Cuts Within 30 Days

Tuesday, August 7th, 2012

President Obama today signed into law the Sequestration Transparency Act, which requires the Administration to detail what the $110 billion in sequestration cuts will look like in Fiscal Year 2013. The Administration must issue its report to Congress within 30 days. The bill was a show of bipartisanship in Congress at time when the House and Senate have a hard time agreeing on anything. It passed the Senate by unanimous consent last month and passed the House by a vote of 414-2. Congress is expected to try to negotiate an alternative to sequestration during the lame duck session that will save $1.2 trillion over ten years.

Nancy Conneely, Public Policy Manager

 

By admin in Legislation
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Legislative Update: Sequestration

Friday, August 3rd, 2012

House and Senate Continue to Spar Over Sequestration

Speaker of the House John Boehner along with other members of the House Republican leadership sent a letter this week to Senate Majority Leader Harry Reid, urging the Senate to agree to a deal that would prevent sequestration just for defense. Senator Reid responded in letter that read in part:

Democrats have no intention of giving up on balanced deficit reduction. At the same time, we fully agree about the importance of avoiding the so-called fiscal cliff. Toward that end, the Senate recently passed legislation that cuts taxes for 114 million middle class families. By not extending tax breaks that only go to the very wealthy, the bill also produces critical savings that could be used to suspend sequestration as part of a comprehensive deficit reduction package.

Congress is scheduled to go on recess today until Monday September 10th. When they return, they are expected to pass a six month continuing resolution, but will not tackle sequestration until after the election.

Nancy Conneely, Public Policy Manager

By admin in Legislation
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Congress to Pass Six Month CR in September

Tuesday, July 31st, 2012

Senate Majority Leader Harry Reid and House Speaker John Boehner announced today that they have reached a deal on a six-month continuing resolution (CR), which will fund the government at $1.047 trillion, which is the level set for FY 13 in the Budget Control Act (BCA). While no other details have been announced, staff will work through August recess to draft a bill. One issue to note is that the funding level set by the BCA is $4 billion more than the FY12 level, so the CR cannot simply fund programs at last year’s levels. It is unclear how Congress will allocate the additional funding for the six month CR.

Nancy Conneely, Public Policy Manager

By admin in Legislation, Public Policy
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Senate Holds Hearing on Impact of Sequestration on Education Programs

Wednesday, July 25th, 2012

The Senate Appropriations Subcommittee on Labor, Health and Human Services and Education held a hearing this morning to hear from Secretary of Education Arne Duncan and a panel of state and local educators about the impact of sequestration on education programs. Chairman of the subcommittee, Senator Tom Harkin (IA), called on his colleagues to come to a bipartisan and balanced approach to deficit reduction, rather than the “arbitrary” cuts of sequestration.

During his testimony, Secretary Duncan agreed that we need to take a balanced approach because sequestration will cut both effective and ineffective programs. He also argued that cutting education funding is very much a national security issue due to the number of highly technical jobs, including those in the military sector, which go unfilled because there are not enough skilled individuals to fill them. When asked about the impact of the cuts on education reform efforts, Duncan said that sequestration will touch all education programs, including CTE.

June Atkinson, State Superintendent of Public Instructionin North Carolina, spoke about how sequestration would hurt her state’s effort at increasing college and career readiness. For example, providing training for Microsoft certifications requires CTE funding, which would be cut under sequestration. She also noted that the graduation rate of CTE concentrators in North Carolina is 90 percent. Presumably cuts to Perkins funding would hinder the tremendous achievement of CTE students.

Harkin also released this morning Under Threat – Sequestration’s Impact on Nondefense Jobs and Services, a report which looks at the potential impact of sequestration on education, health and labor programs under the subcommittee’s jurisdiction. The report gives national as well as state-by-state estimates of the number of jobs that could be lost and the number of individuals who could lose services if sequestration goes into effect.

Nancy Conneely, Public Policy Manager

 

By admin in Legislation, Public Policy
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Sequestration: Resources and New Information

Monday, July 23rd, 2012

The information surrounding the impact and logistics of sequestration is continually in flux. With little guidance from the Office of Management and Budget, a number of policy groups are speculating about what will happen in 2013. We also know that states and locals are bracing for the worst, and trying as best they can to prepare for an approximately 8 percent cut to federally funded programs. To help you better understand the potential impact of sequestration, we have pulled together a number of resources from various sources.

Based on estimates from the Center on Budget and Policy Priorities and the National Education Association, an 8.4% cut to Perkins in FY13 would amount to a $94 million cut. A cut of this magnitude would bring funding down to 1999 levels at time when there are 2.5 million more students enrolled in CTE than there were in 1999. There is however, some good news. We had originally believed that sequestration would cut Perkins advance appropriations immediately on January 3, 2013, but the Department released a clarifying memo on Friday that read in part:

If Congress does not act to avoid sequestration, and assuming the 2013 appropriations for these four accounts are structured similarly to past appropriations (which they are under the pending House and Senate appropriations bills), the Department will take the sequester from funds that would become available in July 2013 for school year 2013-14, not from the 2012 advance appropriations available in October 2012. The amount of the reduction will be calculated by applying the sequester percentage (to be determined by the Office of Management and Budget) to the fiscal year 2013 budgetary resources from both the 2012 advance appropriations and the 2013 regular appropriations that are available for the four accounts. The calculated sequester amount will then get subtracted from the July 2013 funding. The net effect will be to cut the funding level for the programs in the four accounts with advance funding by the same percentage as all other programs, projects, and activities.

We also want to bring to your attention the results of a survey conducted by the American Association of School Administrators (AASA) on the impact of sequestration on schools. The overwhelming majority of respondents (90 percent) said that neither their state nor their district would be able to absorb or offset the sequestration cuts. Fifty-four percent said that they have built in the potential cuts to their 2012-2013 school year budgets. The areas that are most likely to be affected, according to survey respondents, are: professional development, after-school programs, laying off instructional staff, and increasing class size.

What would sequestration do to CTE in your state? As we go up on the Hill and advocate against cuts to Perkins, we need to be able to share your stories. Please send any impact data on an 8.4% cut to Nancy Conneely at nconneely@careertech.org

By admin in Legislation, Public Policy
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