Federal Update December 7, 2008 Sharon Walsh ITCA and DEC

1. Federal Update December 7, 2008 Sharon Walsh ITCA and DEC

2. Agenda • Transition to New Administration • New 111th Congress • Economy and Stimulus • Appropriations • 110th Congress • Regulations Update • Plans for 111th Congress

3. Obama Administration Transition • www.change.gov • Transition Team Meetings- "Seat at the Table" Transparency Policy • Early Childhood Group (Education and HHS) met in 3 sessions last week • Listening Mode • Looking for cross-agency ideas on what is needed to create a national policy for early childhood and the integration and alignment of existing federal programs

4. Policy Workgroups • Economic • Education • Energy and Environment • Health Care • Immigration • National Security • Technology, Innovation and Government Reform

5. Education Policy Group • Led by Linda Darling-Hammond • Education Plan - $18 B investment • Early Childhood - $10 B of the total • Includes Zero to 5 Plan with emphasis on infants (Part C mentioned) ; expansion of Early Head Start and Head Start; provision of affordable high-quality child care • K-12 • Higher Education

6. Key Nominations • Attorney General – Eric Holder • Secretary of State – Hillary Clinton • Commerce – Bill Richardson • Defense – Robert Gates • Homeland Security – Janet Napolitano • HHS – Tom Daschle • Treasury – Tim Geithner

7. Key Appointments • Rahm Emanuel – Chief of Staff • Gen James Jones – National Security Adviser • White House Press Sec – Robert Gibbs • Melody Barnes – Director, Domestic Policy Council • Peter Orszag – Director, Office of Management and Budget (OMB)

8. 111th Congress Convenes January 6, 2009 Senate (100 members) • Democrats – 56 • Republicans – 41 • Independents – 2 House (435 members) • Democrats – 255 • Republicans – 177

9. 111th Congress • Senate Majority Leader – Harry Reid (NV) • President Pro Tempore – Robert Byrd (WV) • Asst Majority Leader – Dick Durbin (IL) • Senate Min Leader–Mitch McConnell (KY) • Minority Whip – Jon Kyl (AZ) • Speaker of the House – Nancy Pelosi (CA) • Majority Leader – Steny Hoyer (MD) • House Minority Leader – John Boehner (OH) • Minority Whip – Eric Cantor (VA)

10. Center on Budget and Policy Priorities • State Budgets - Updated November 12, 2008 • At least 41 states faced or are facing shortfalls in their budgets for this and/or next year.  • Over half the states had already cut spending, used reserves, or raised revenues in order to adopt a balanced budget for the current fiscal year • Budgets have fallen out of balance again and new gaps have opened up in the budgets of at least 31 states plus DC • http://www.cbpp.org/9-8-08sfp.htm

11. Families USA • “Left Behind: America’s Uninsured Children” November 2008 Families USA Report www.familiesusa.org • One in nine children or 11.1% of children in this country are uninsured

12. Health Care Reform • Major priority -111th Congress & Administration • Sen. Max Baucus (D-MT) issued a 98 page white paper “Call to Action: Health Care Reform 2009."  • “Comprehensive health reform legislation must be part of any successful economic recovery plan….calls on Congress to act on meaningful health care reform in 2009 that achieves coverage for all Americans, while also addressing the underlying problems of cost and quality.  We need immediate action on health care reform.  Health care costs and the economy are linked:  The key challenges of our health care system are high costs, low quality, and insufficient access.” http://finance.senate.gov/healthreform2009/home.html

13. Stimulus Package Planned • Fall 2008 unemployment benefits extended • New stimulus (recovery) package with investment in jobs creation is being negotiated • May include Increase in FMAP • Significant advocacy for many initiatives including funding for early childhood (child care, Head Start, IDEA program)

14. Federal Budget • Benefits Programs (Social Security, Medicare and Medicaid – 53% • National Security – 24% • Nonsecurity Domestic – 16% • Interest on the Debt – 7% Source OMB 2008

15. Appropriations • FFY’09 Began October 1, 2008 funding for July 2009 awards • 9/12 bills not passed by 10/1 • Continuing Resolution (CR) funding at FFY’08 levels • Final FFY’09 on President’s desk 1/20 • Process for FFY’10 begins in 2/09

16. IDEA Funding • Part B - $10.94 billion -17.1% • Part C - $435 million • Sec. 619 Preschool - $374 million • Support Programs (Part D) - 1% of total IDEA budget - $224.6 million

17. Federal Funding – FFY’08 • MCH Block Grant - $666 million • HRSA -Combating Autism Act - $16.5 million • DD State Grants - $72.5 million • Head Start - $6.9 billion • CCBDG - $2 billion • CAPTA - $95 million

18. 110th Congress • Head Start Reauthorization • Higher Education Opportunity ACT Reauthorization (HEOA) • Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity ACT • ADA Amendments ACT of 2008

19. Regulations Update • 3 sets of Part B regulations have been published • Final Part C regulations went to OMB in mid-October • OMB has 90 days to review • Part C regulations can be released up until the Inauguration • FERPA regulations expected 12/08 • Title I regulations published Fall 2008

20. Medicaid Update • Six Medicaid regulations put on Moratorium through March 2009 • Contained in Iraq War Supplemental 6/08 • Rehabilitation, Transportation and Administrative Claiming and Targeted Case Management (TCM) are on hold • Some portions of TCM regs did go into effect • Outpatient Clinic Regulation in effect - Not covered in Moratoria

21. Plans for 111th Congress • Fiscal Crisis • NCLB • IDEA • SCHIP Reauthorization – Passed 2x • Child Care Block Grant Reauthorization • CAPTA Reauthorization • Developmental Disabilities Act Reauthorization • SAMPSA Reauthorization • Child Nutrition