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Federal Funding 101

Federal Funding 101. Noelle Ellerson. Federal Funding. Timelines matter! Education budgets are influenced by federal, state and local timelines, none of which line up Federal budget year starts Oct 1 We are in federal fiscal year 2013 (Oct 1 2012-Sept 30 2013)

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Federal Funding 101

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  1. Federal Funding 101 Noelle Ellerson

  2. Federal Funding • Timelines matter! • Education budgets are influenced by federal, state and local timelines, none of which line up • Federal budget year starts Oct 1 • We are in federal fiscal year 2013 (Oct 1 2012-Sept 30 2013) • FY13 dollars will be in your school in the 2013-14 school year

  3. Federal Funding: Two Processes • Budget • Sets overall spending for the government • Determines the size of the ‘pie’ • Establishes policy priorities • Budget resolutions are non-binding • Appropriations • Sets spending levels for agencies and programs • Education funding is in the LHHS-Edu appropriation bill

  4. FY12 Funding ‘Pie’

  5. How’d We Get Here? • Budget Control Act of 2011 • Part of debate to raise debt ceiling • Established requirement to save $1.2 trillion over ten years; failure to reach agreement for blended approach via Super Committee would trigger sequestration • Sequestration was triggered January 1, 2012 and took effect March 1 2013 • It established ten years of budget caps that set the overall spending ‘pie’ for ten years

  6. Budget Control Act • BCA set in law discretionary caps for ten years (FY 12-FY 21). • Reduced spending by $900 billion over ten years. • Supercommittee failure triggered sequestration. • $1.2 trillion in automatic cuts between FY 13-21; 50% from defense, 50% from nondefense

  7. Impact of FY13 Sequestration on Education

  8. USED Funding Levels

  9. Sources: CEF Calculations based on An Update to the Economic and Budget Outlook: Fiscal Years 2013 to 2023, CBO, February 2013; OMB Report Pursuant To The Sequestration Transparency Act Of 2012, September 2012; the American Taxpayer Relief Act of 2012, January 2013; House Budget Committee’s Fiscal Year 2014 Budget Resolution Discretionary Spending table and Senate Budget Committee’s FY 2014 Budget Resolution Discretionary Spending Summary

  10. Sources: CEF Calculations based on An Update to the Economic and Budget Outlook: Fiscal Years 2013 to 2023, CBO, February 2013; OMB Report Pursuant To The Sequestration Transparency Act Of 2012, September 2012; the American Taxpayer Relief Act of 2012, January 2013; House Budget Committee’s Fiscal Year 2014 Budget Resolution Discretionary Spending table and Senate Budget Committee’s FY 2014 Budget Resolution Discretionary Spending Summary

  11. Function 500 Funding Ryan 10-year total = $906 billion; Murray 10-year total = $1,130 billion

  12. US Map: Federal Revenue in Local Edu Budgets

  13. Funding • Sequestration • It happened! • 5.1% • Across the board, all K-12 programs, will impact you in 2013-14 school year • IMPACT AID is immediate • Role of Sequester in pulling the level on flexibility re: IDEA MoE • Still not resolved, still opportunity to get it ‘fixed’.

  14. Funding: FY14 • House and Senate each passed budget resolutions. • Drastically different; we are likely on course for another CR • House • Maintains sequestration • Funding levels for education are, at best, slightly worse than sequestration • Significant reliance on discretionary spending cuts • Senate • Resolves sequestration, though there would still be cuts to discretionary spending • Maintains investment in education • Includes$20 million for school infrastructure

  15. FY14: President’s Request • Dead on arrival (or, even more so than usual!) • Once again highlights education as a funding priority • Once again pushes all new dollars in to competitive programs • $1.2 billion in new funding goes to competition. Level funds Title I and IDEA, along with almost all other programs.

  16. FY14 President’s Budget Request • New money in: • STEM • School Safety • i3 and RttT • Charter Schools, Magnet Schools and High School redesign • Promise Neighborhoods • 21st Century • Questionable assumptions • Resolves sequester • ESEA reauthorization • NO funding for education technology • Impact Aid CUT $66 million

  17. Questions? Noelle Ellerson nellerson@aasa.org @Noellerson The Leading Edge Blog: www.aasa.org/aasablog.aspx

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