What States Should Know About the
President’s FY 2015 Budget
March 11, 2014
Federal Funds
Information for States
It adheres to the discretionary spending
caps set in the BBA
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The BBA amended the BCA for FYs 2014 and 2015.
The Senate plans to work off these same levels, foregoing
adoption of a FY 2015 budget resolution.
The House plans to adopt a FY 2015 budget resolution,
notwithstanding the fact that the BBA made it unnecessary. It is
not known whether it will adhere to or reduce the BBA
discretionary spending levels.
It repeals sequestration of mandatory
programs included in the BCA
Program
Voc. Rehab. State Grants
FY 2014
PB 2015
($ in 000’s)
($ in 000’s)
Percent
Change
$3,064,305
$3,335,074
8.8%
1,577,600
1,700,000
7.8%
Promoting Safe and Stable
Families (mandatory)
320,160
360,000
12.4%
Prevention and Public Health
Fund
928,000
1,000,000
7.8%
2,144,716
3,600,000
67.8%
Social Services Block Grant
Community Health Centers
(mandatory)
Highway Funding Exempt from
Obligation Limitation
685,792
739,000
Other ACA mandatory programs that receive a direct appropriation in FY 2015
7.8%
It proposes a “growth initiative” that
would raise FY 2015 spending by $56B
Select Programs Funded Under the Opportunity, Growth, and Security Initiative
($ in millions)
FY 2015 Proposed Funding
Department/Program
Base Initiative
Total
Department of Education
Preschool Development Grants
$500
$250
$750
ConnectED (teacher professional development)
200
300
500
Department of Energy
Race to the Top for energy efficiency, grid modernization
NA
200
200
State and local climate change resilience planning
NA
355
355
Department of Health and Human Services
Early Head Start-Child Care Partnerships
650
800
1,450
National Institutes of Health grants
30,362
970 31,332
Department of Homeland Security
National Preparedness Grant Program
1,043
300
1,343
Department of Housing and Urban Development
Promise Neighborhoods
100
200
300
Choice Neighborhoods
120
280
400
Integrated Planning and Investment Grants (HUD)
NA
75
75
Jobs-Plus targeted to public housing
25
125
150
Department of Justice
Youth investment justice initiative
NA
147
147
Department of Labor
Training and employment services
~3000
750 ~3,750
Job-driven training at community colleges
0
1,500
1,500
Encourage state paid leave programs
5
100
105
It redirects the $612M TANF
Contingency Fund


TANF Contingency Fund set to expire 9/30/14
Extends fund, but redirects for other purposes
–
$602M for new Pathways to Jobs initiative

–
Support work opportunities through subsidized
employment for low-income parents and youth
$10M for technical assistance, research, and
evaluation
It recycles many proposals from prior
years



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
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ESEA reauthorization
Early childhood initiative funded by tobacco taxes
Consolidation of WIA Dislocated Worker and TAA into
new program
UI trust fund loan provisions
FEMA grant restructuring
Tax and bond proposals
It recycles many proposals from prior
years

Child support and fatherhood initiative
–

Variety of proposals to improve collections and increase program
effectiveness; most funding occurs in future years
Medicaid/CHIP
–
–
–
–
Extends Medicaid QI and TMA through CY 2015
Extends CHIPRA performance bonuses; express lane eligibility
Extends Medicaid primary care payment increase, expands to
mid-level providers
Program savings
–
–
–
Reduce waste, fraud, and abuse
Limit Medicaid reimbursement of durable medical equipment
Improve Medicaid drug rebate and payment policies
It includes a 4-year reauthorization of
the highway program



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$302B over four years
Reclassifies all surface transportation program grants as
mandatory and exempt from sequestration
Establishes Transportation Trust Fund
– Highways account
– Mass transit account
– Multimodal account
– Rail account
Transfers $78B in general funds over four years
Paid in part by unspecified corporate tax reform ($150B)
It addresses ACA issues, funding, and
programs in various ways
Program
FY 2014
PB 2015
($ in 000’s)
($ in 000’s)
Percent
Change
Extends:
Maternal, Infant, and Early
Childhood Home Visiting
$371,200
$500,000
34.5%
Health Profession Opportunity
Grants
78,880
85,000
7.8%
Personal Responsibility
Education Program
69,600
75,000
7.8%
Aging and Disability Resource
Centers
15,399
20,000
29.9%
46,400
0
-100%
2,500
0
-100%
Does not extend:
Abstinence Education
Family-to-Family
It addresses ACA issues, funding, and
programs in various ways
Program
FY 2014
PB 2015
($ in 000’s)
($ in 000’s)
Percent
Change
Reductions:
Refugee Assistance –
Transitional and Medical
Access to Recovery
Section 317 Immunizations
National Breast and Cervical
Cancer Early Detection
$391,477
$383,266
-2.1%
50,000
0
-100%
611,990
560,508
-8.4%
207,269
169,204
-18.4%
It level funds a large number of major
grant programs, with exceptions listed
Program
FY 2014
PB 2015
($ in 000’s)
($ in 000’s)
Percent
Change
Child Care Development Fund
(entitlement)
$2,917,000
$3,667,000
25.7%
Child Care Development Block
Grant (new set-aside)
2,360,000
2,417,000
2.4%
0
750,000
100%
8,598,095
8,868,389
3.1%
250,000
800,000
220.0%
47,304
60,000
26.8%
6,716,000
6,823,000
1.6%
Foster Care Interventions
(Foster Care and Medicaid)
Head Start
Race to the Top
Workforce Innovation Fund
WIC
It level funds a large number of major
grant programs, with exceptions listed
Program
Public Housing Operating Fund
Residential Substance Abuse
Treatment for State Prisoners
Transportation Investments
Generating Economic Recovery
Capital Investment Grants
FY 2014
PB 2015
($ in 000’s)
($ in 000’s)
Percent
Change
$4,400,000
$4,600,000
4.5%
10,000
14,000
40.0%
600,000
1,250,000
108.3%
1,942,938
2,500,000
28.7%
It level funds a large number of major
grant programs, with exceptions listed
Program
Improving Teacher Quality State
Grants
FY 2014
PB 2015
($ in 000’s)
($ in 000’s)
Percent
Change
$2,394,830
$2,000,000
-14.9%
1,288,603
1,221,790
-5.2%
2,881,575
2,855,443
-0.9%
298,316
186,000
-37.7%
Low-Income Home Energy
Assistance
3,424,549
2,750,000
-19.7%
Community Services Block
Grant
674,000
350,000
-48.1%
160,000
0
-100%
50,000
0
-100%
Impact Aid
UI State Administration
AML Grants to States
Preventive Health Block Grant
Racial and Ethnic Approaches to
Community Health
It level funds a large number of major
grant programs, with exceptions listed
Program
FY 2014
PB 2015
($ in 000’s)
($ in 000’s)
Percent
Change
Community Development Block
Grants
$3,030,000
$2,800,000
-7.6%
HOME Investment Partnerships
Program
1,000,000
950,000
-5.0%
1,448,887
1,018,000
-29.7%
906,896
757,000
-16.5%
180,000
0
-100%
Clean Water SRF
Drinking Water SRF
State Criminal Alien Assistance
Program
It transitions from formula grants to
competitive grants

New competitive grant proposals:
–
–
–
–
–
–
–
–
–
–
High School Redesign ($150M)
State Higher Education Performance Fund ($4B)
WIA Incentive Grants ($80M)
Sector Strategies ($15M)
Bridge-to-Work ($2B)
Back to Work Partnerships ($4B)
LIHEAP Energy Burden Reduction Grants ($50M)
Elder Justice Initiative/Adult Protective Services ($25M)
SAMHSA – Peer Professionals ($10M)
CDC/SAMHSA – prescription drug abuse/overdose ($25M)
It transitions from formula grants to
competitive grants

New competitive grant proposals:
–
–
–
–
–
Fixing and Accelerating Surface Transportation ($1B)
National Freight Infrastructure Program ($500M)
Juvenile Justice Realignment Incentive Grants ($10M)
Edward Byrne Memorial Incentive Grant ($15M)
Project Rebuild Competitive Portion ($5B)
It transitions from formula grants to
competitive grants
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Competitive carve-outs of existing formula grants:
–
–
–
–
–
Improving Teacher Quality State Grants ($20M)
Special Education Part B Grants to States ($100M)
Career and Technical Education State Grants ($100M)
Hospital Preparedness Program ($15M)
Training Partnership Grants ($60M)
Most of it is DOA
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Smaller, noncontroversial proposals could be
incorporated into various spending bills
Legislative proposals or anything that would have to
move through the reconciliation process (e.g., changes to
mandatory programs or taxes) will not be addressed
What Next?

House and Senate appropriations leadership
vows an “aggressive” timetable:
–
–
–
Markups in May
Floor action over the summer
“Many” bills enacted by October 1
Questions?
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