President’s FY 2013 Budget

1. President’s FY 2013 Budget Impact on Programs Important to States Federal Funds Information for States

2. Food and Nutrition • Funding changes • Supplemental Nutrition Assistance Program (SNAP) • Restores benefit cuts (moves sunset from 10/31/13 to 3/31/14) • Extends temporary elimination of time limits for able-bodied adults without dependents until 9/30/2013

3. Education • Consolidates programs • ESEA reauthorization proposal: 38 programs consolidated into 11 new programs • Program changes • Name changes (i.e. Title I Grants to LEAs, School Improvement Grants) • New Programs and Recycled Proposals • Presidential Teaching Fellows • Higher Education (RTT-College Affordability and Completion and First in the World Fund) • American Jobs Act Proposals

4. Education, Cont. • Funding Changes • Title I Rewards: 2% set-aside of state’s Title I funds • Effective Teachers and Leaders: 25% reserved for Department of Education (ED) to build evidence on teacher quality, invest in STEM, and enhance school leadership • Vocational Rehabilitation and Adult Education set-asides for Workforce Innovation Fund (WIF) • Increase maximum Pell award to $5,636

5. Labor • Funding Changes • Workforce Investment (WIA) • Doubles funding for WIF ($100m); small set-asides from Education programs • Maintains governor’s set-aside at 5% • Unemployment Insurance (UI) • $15 million increase in funding for REAs • -7.4% decrease in base state administration funds

6. Labor, Cont. • Recycled Proposals • UTF Solvency: • Delays FUTA credit reduction and accrual of interest for two years • Increases federal wage base to $15,000 in 2015 and simultaneously lower FUTA tax rate. • 10-month extension of EUC and 100% federal financing of EB • Funding to expand Short-Time Compensation (STC) programs • American Jobs Act proposals

7. Health and Human Services • Temporary Assistance to Needy Families (TANF) • Restores TANF supplemental grants (paid for by reducing/restructuring TANF contingency fund) • Title IV-E Foster Care • $252m foster care reform proposal, few details • Changes treatment of child support payments

8. Health and Human Services, Cont. • Child Support Enforcement • New child support and fatherhood initiatives • Few details, appears to be phased-in over several years • Initiatives to increase and improve collections • ACA Prevention and Public Health Fund • Rescinds $4 billion in future years

9. Medicaid • Program Increases • Extend TMA and QI Increase • Program Savings • Focus on prescription drugs • Reducing waste, fraud, and abuse • Future Changes • Blended FMAP (2017) • Provider taxes (phase-down provider tax threshold beginning in FY 2015) • Maintain DSH reductions in FY 2021-2022

10. Homeland Security

11. Justice

12. Transportation • President’s budget lays out six-year proposal for reauthorizing surface transportation programs • Designates all surface transportation funding as mandatory • Converts existing Highway Trust Fund into a new Transportation Trust Fund

13. Transportation, Cont. • Highways • $700 million for Transportation Leadership Awards • $500 million for TIFIA program

14. Transportation, Cont. • Mass Transit • Transportation Leadership Awards program starting in FY 2014

15. Transportation, Cont. • Rail • Financed with dedicated funding through a new Multimodal Account of the Transportation Trust Fund

16. Transportation, Cont. • National Infrastructure Bank (NIB) • Proposes independent NIB for large-scale transportation, water, and energy infrastructure projects • Would fund projects through loans and loan guarantees • Would finance no more than 50% of total project costs • National Infrastructure Investments • $500 million for competitive grants under TIGER program

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