Federal Budget

NARC is active on annual federal budget issues impacting regional planning organizations and their local governments. Please use the information and resources below to help guide a general understanding of and up-to-date activities on the federal budget.

Click HERE for NARC’s general policy positions on the federal budget.

Click on a link below to drop to a section:
NARC Resources
Federal Budget 101
Administration
Congress

NARC Resources

Sequestration
PowerPoint on FY14 Budget – Congressional Activity & the President’s Request
NARC President’s Statement on Continuing Resolution Passage
NARC Release on Municipal Bond Issue in FY14 Budget Resolution
Letter for members to personalize and send to Congress on Sequestration & the CR

Federal Budget 101

Timeline and Steps
Brief Overview and Core Elements of the Process
Key Terms
Authorization vs. Appropriation
Where the money comes from
How the money is spent
Borrowing and the Federal Debt

Administration

Office of Management and Budget (White House Budget Office)

2013 State of the Union Address Priorities (likely to be seen in FY14 budget request):

  1. Reduce the deficit and debt
  2. Research and development
  3. Manufacturing
  4. Infrastructure
  5. Climate change
  6. Education

President’s FY14 Budget – released Monday, April 10, 2013

  • Click HERE to access all OMB budget documents
  • Overview of Budget Request
  • $3.77T requested for FY14
  • Increases spending by $160B – includes canceling sequester and new spending
  • Swaps sequester cuts for reducing entitlement programs
  • 10 year, $1.8B deficit reduction plan
  • Extra $50B for infrastructure = $40B for “fix it first” projects + $10B for high-value projects
  • Establishes a National Infrastructure Bank
  • Invests in job training and educational opportunities
  • Simplifies the tax code
Congress

House Budget Committee

  • FY14 Budget highlights: ( H Con Res 25 passed 3/21/13 by a vote of 221-207)
    • Similar to Chairman Ryan’s FY13 budget
    • Propose FY14 non-defense domestic discretionary spending = $414.4 billion
      • represents an 18% reduction from the Budget Control Act caps
      • Appropriations Committees to determine cuts and reductions
      • Community & Regional Development programs were allocated $8 billion in discretionary budget authority, and the committee suggests eliminating “non-core” federal programs such as the CDBG program, limiting  UASI Grants to just the top 10 cities, making further changes to FEMA disaster relief programs to ensure that the state and local governments most in need receive the required assistance, and modifying the National Flood Insurance Program.
      • Recommends consolidating job-training programs, based on reforms in the SKILLS Act.
      • Eliminates high speed rail and intercity rail projects.
      • Supports increasing domestic energy production, and reduces funding for climate change activities across government and recommends streamlining and better coordinating those efforts.
      • Assumes the MAP-21 authorized level of highway and transit funding, and aligning Highway Trust Fund spending with collected gas tax revenues.
      • Recommends innovative financing mechanisms be explored to support transportation infrastructure and safety programs.
    • Require all authorizing committees annually to provide spending-reduction recommendations for programs that are duplicative, wasteful, outmoded or excessively expensive
    • Erase the deficit in 10 years by cutting spending by $4.6 trillion (from years 2014-2023)
    • Reduce overall spending from the current 5% projected annual growth to 3.4% yearly increases
    • Keep discretionary spending flat
    • Enact changes in federal laws, including tax code overhaul
  • White House Statement on Plan
  • The House Democrats introduced their own FY14 budget plan - highlights include:
    • Ends the sequester and pushes for enacting HR 699, Stop the Sequester Job Loss Now Act
    • Cuts spending by $624 billion
    • Reduces the deficit by $1.8 trillion over 10 years
    •  $1.058 trillion in discretionary spending for FY14
    • $80 billion for education jobs initiative
    • $50 billion to address immediate transportation priorities
    • $10 billion to establish an infrastructure bank
    • Includes efforts to address climate change
    • Promotes “Make It In America” agenda
    • Looks to create a national strategy on poverty

Senate Budget Committee

  • Chairman Murray Letter on Committee Priorities, sent 1/24/13
  • FY14 Budget highlights: (S Con Res 8 passed 3/23/13 by a vote of 50-49)
    • Replaces sequestration’s cuts with deficit reduction plan (FY14 and beyond) — calls for $975B in new tax revenue and $975B in spending cuts over 10 years
      • -$240B defense
      • -$142B non-defense discretionary spending
      • -$76B other mandatory programs
    • Includes $100B jobs and infrastructure package
      • $50B “fix-it-first” infrastructure investment
      • $20B for school infrastructure
      • $10B for an infrastructure bank
      • $10B for other infrastructure investments
      • $10B for worker training
    • $1.8T in deficit reduction over 10 years
  • White House Statement on Plan

Comparison between House and Senate FY14 Budget Resolutions


House Appropriations Committee
Senate Appropriations Committee
Status of Appropriations Legislation

  • HR 933, FY13 Continuing Resolution 9 (March 28-September 30 funding)
    • Chairman’s Explanation of HR 933
    • White House Statement of Administration Policy – HR 933
    • House passed on 3/7/13 by a vote of 267-151
  • Senate Appropriations Chairman Mikulski released her substitute amendment for HR 933, which includes the FY13 Agriculture, Homeland Security and Commerce-Justice-Science appropriations bills. It doesn’t include any sequestration flexibility beyond DoD (what was included in the House bill). The bill does, however, restore funding for road, bridge, safety, transit and air service programs at the authorized levels.
    • Summary of the Senate FY13 CR
    • Chairman’s Explanation
    • Senate passed on 3/20/13 by a vote of 73-26; House approved 3/21/13 by a vote of 318-109
      • Chairman’s Explanation
      • Amendment list
      • Includes full FY13 appropriations bills for DoD, Military-Construction-VA, Agriculture, Commerce-Justice-Science and Homeland Security.
      • Discretionary spending is set at ≈$984B taking into account sequestration (FY12 was $1.043T).
      • Agriculture - $139.3B, 2% more than FY12 before sequester; $20.5B in discretionary funding, 6% more than 2012
      • Commerce-Justice-Science - $50.2B in discretionary budget authority, 5% less than FY12 before sequester; EDA received a 51% funding cut
      • Homeland Security – $46B before sequester, level with FY12; $10.8B for FEMA, up 1%, including disaster relief funds
      • Most of the other agencies will experience flat funding (not including sequester)
  • CR Funding Comparison (from CQ)

Contact Joanna Turner, joanna@narc.org or 202.618.5689, with questions.

Copyright © 2013 National Association of Regional Councils