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President’s FY 2012 Budget

President’s FY 2012 Budget. Impact on Programs Important to States. Federal Funds Information for States. Human Services. Temporary Assistance to Needy Families (TANF) One-year extension of TANF and related programs (9/30/12) Restore FY 2011 TANF supplemental grants ($108m)

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President’s FY 2012 Budget

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  1. President’s FY 2012 Budget Impact on Programs Important to States Federal Funds Information for States

  2. Human Services • Temporary Assistance to Needy Families (TANF) • One-year extension of TANF and related programs (9/30/12) • Restore FY 2011 TANF supplemental grants ($108m) • Title IV-E Foster Care • $250m foster care reform proposal, few details • Changes treatment of child support payments (FY 2013)

  3. Human Services, Cont. • LIHEAP • H.R. 1 maintains block grant funding in FY 2011 ($4.5b), reduces contingency funds ($200m) • President’s budget reduces block grant in FY 2012 ($1.98b), maintains contingency funds ($590m) • Program integrity and oversight (GAO report) • Child Support Enforcement • Does not extend state incentive match in ARRA; increases incentive payments ($350m) • Initiatives to increase and improve collections

  4. Health Care Reform • Prevention and Public Health Fund • H.R. 1 uses entire amount for existing CDC funding ($750 million in FY 2011) • President’s budget increases funding for public health programs ($1 billion in FY 2012) • H.R. 1 restricts the use of funds for implementation and enforcement of ACA • President’s budget provides funding for a few new programs, reduces/eliminates funding for others

  5. Medicaid • Program Increases • Extend TMA and QI through 9/30/12 • Increase funding for Medicaid audits, PERM • Program Savings • Focus on prescription drugs • Reduce reimbursement for durable medical equip. • Strengthen third-party liability • Future Changes • Provider taxes (phase-down provider tax threshold beginning in FY 2015)

  6. Transportation • President’s budget lays out six-year proposal for reauthorizing surface transportation programs • Designates all surface transportation funding as mandatory

  7. Transportation, Cont. • Highways • 55 programs consolidated to five: • National Highway Program: $32.4 billion • Highway Safety Improvement Program: $2.5 billion • Livability Program: $4.1 billion • Federal Allocation Program: $1.4 billion • Research, Technology, and Education: $641 million • $1.3 billion proposed for Transportation Leadership Awards

  8. Transportation, Cont. • Highways • $27.650 billion requested for “Up-Front Funding” • Critical Infrastructure Investment ($25 billion) • Transportation Infrastructure Finance and Innovation ($450 million) • Cross-Border Transportation Infrastructure ($2.2 billion)

  9. Transportation, Cont. • Mass Transit • FTA’s grant structure consolidated in five programs: • Bus and Rail State of Good Repair ($10.7 billion) • Transit Formula Grants ($7.7 billion) • Transit Expansion and Livable Communities ($3.5 billion) • Safety and Operations ($166 million) • Research and Technology Development ($166 million)

  10. Transportation, Cont. • Rail • Rail development and improvement programs consolidated into two programs: • Network Development ($4.0 billion) • System Preservation ($4.0 billion)

  11. Transportation, Cont. • National Infrastructure Bank • $5 billion for grants or loans for projects of national or regional economic significance • Eligible: highway, transit, rail, aviation, ports, and maritime projects • National Infrastructure Investments • $2 billion for competitive grants under TIGER program

  12. Food and Nutrition • Supplemental Nutrition Assistance Program (SNAP) • Restores benefit cuts (sunset reverts 3/31/14) • Child Nutrition • Funds expansions and new programs included in recent reauthorization • Child and Adult Food Care Program (CAFCP) expansion • School Breakfast (SB) expansion • Childhood Hunger Challenge Grants (new, competitive) • H.R. 1 eliminates School Community Garden Pilot program ($1m), Hunger-Free Communities ($5m)

  13. Labor • Workforce Investment (WIA) • Workforce Innovation Fund ($379m) • 8% of WIA Adult, Dislocated Workers, and Youth funds allocated to the WIF ($237m) • H.R. 1 eliminates funding for WIA Adult, Dislocated Workers, and Youth • Trade Adjustment Assistance (TAA) • Proposal to extend ARRA expansions through FY 2012

  14. Labor, Cont. • Unemployment Insurance • UTF Solvency: • Delays FUTA credit reduction for states with outstanding loans until 2014 • 2-year suspension of interest accrual and interest payments on loans from the FUA • In 2014, federal wage base increases from $7,000 to $15,000. FUTA tax rate will be lowered, making the proposal revenue neutral. • Expanded Short-Time Compensation (STC) • Financial Integrity: permits states to use a portion of overpayments to expand enforcement efforts

  15. Education: ESEA Reauthorization • 38 programs consolidated into 11 new programs (eliminates 13 discretionary programs) • Program Changes • Title I Grants to LEAs (College and Career Ready Students) • Title I Rewards program ($300m) • School Improvement Grants (School Turnaround Grants) • Schools choose one of four “turnaround” models ($600m) • State Assessments (Assessing Achievement) • Competitive and formula grants ($420m) • Permanent Race to the Top (RTT) • Additional district-level competitions

  16. Education: Other • New Higher Education Programs • College Completion Incentive Grants • College Pathways and Accelerated Learning • First in the World Competition • Early Learning Challenge Fund • Special Education • H.R. 1 originally cut funding ($558m) • H.Amdt. 59 restored special education funds, but made cuts to Title I School Improvement ($337m) and Teacher Quality Grants ($500m)

  17. Questions? • Check for updates at www.ffis.org • Almost all states subscribe to FFIS; please contact us for your password and to be added to the distribution list: mhoward@ffis.org, 202-624-5848

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