The Corps Network’s
FISCAL YEAR 2014 PRESIDENT’S BUDGET SUMMARY
On April 10th, the White House released President Obama’s Fiscal Year 2014 budget. The Corps Network has responded by preparing a summary of the budget with a focus on the information that most likely could affect youth, our Partners, and our member Corps. Our summary provides an overview of what the budget proposes for the Corporation for National and Community Service, as well as the Departments of Education, Energy, Housing, Interior, Justice, and Labor.
Many of the proposals mentioned in the budget must be passed and funded by Congress, while some of the changes within programs and prioritizations can be carried by the Administration unilaterally. The President’s Budget provides insight into where the Administration and the federal agencies are going over the next year and where their priorities lay.
As you read, please let us know if you see anything of interest that you would like more information on, we are happy to discuss how your Corps might be able to be part of the discussion.
Questions or comments, please contact Tyler Wilson (twilson@corpsnetwork.org).
Generally, the Budget…
· Proposes $1.058 trillion in spending for so-called discretionary domestic programs for 2014–spending other than for defense or entitlements such as Medicare. That honors a cap set by Congress and the President as part of the 2011 debt-limit deal.
· Includes $1.8 trillion of additional deficit reduction over 10 years with the deficit being reduced to 2.8% of Gross Domestic Product by 2016 and 1.7% by 2023
· Calls for nearly $300 billion in new spending on jobs, public works and expanded pre-school education and nearly $800 billion in new taxes, including an extra 94 cents a pack on cigarettes.
· Would repeal sequestration fully through tax increases on the wealthy to offset the cost and also through more than $1 trillion in other cuts from a variety of programs across the federal government.
· Proposes changes to Medicare and Social Security by:
o Finding cost savings in the Medicare prescription drug program;
o Proposing higher Medicare premiums for couples making more than $170,000 a year; and
o Changing how Social Security benefits and Cost of Living Allowances (COLA) are determined by switching calculation of inflation called “chained CPI” which would slow COLA increases by about 0.3 percent per year over the prior measure of inflation. Chained CPI would affect a host of other government programs and calculations that uses a measure of inflation.
· Expands the Pay for Success program which leverages philanthropic and private dollars to fund preventive services provided by nonprofits and other non-governmental entities up front, with the Government paying back investors only after the interventions generate results that save taxpayer money.
o In 2014, the Administration will broaden its support for Pay for Success, reserving up to $185 million in the areas of job training, education, criminal justice, housing, and disability services.
o The Administration is also proposing a new $300 million Pay for Success Incentive Fund at the Department of Treasury to help State and local Governments implement Pay for Success programs with philanthropies, nonprofits, and other nongovernmental organizations. The fund will provide credit enhancements for philanthropic investments and outcome payments for successful, money-saving services.
EDUCATION & HIGHER EDUCATION ISSUES
The budget request proposes $71.2 billion in discretionary spending for the Department of Education, which is an increase of $3.1 billion or 4.5 percent over the fiscal year 2012 level (most school funding is mandatory). Of this amount, $22.8 billion alone is designed to fund the Pell Grant program and its maximum grant of $5,785 for the 2014-2015 award year.
The Budget…
· Proposes establishing a limited number of Performance Partnership pilots designed to improve outcomes for disconnected youth, including young adults who have dropped out of school and are not employed.
o Approved performance partnerships designed at the State or community level could blend discretionary funds for youth-serving programs across agencies, many of which work directly with nonprofits, in exchange for greater accountability for results. Performance indicators, such as education and employment outcomes, would be used to gauge progress, and evaluations would study what locally designed strategies work best.
o The Administration will work with community and nonprofit leaders – both secular and religious — to explore the potential for similar performance partnerships in other areas, like revitalizing distressed communities and reducing youth violence.
· Proposes a competitive fund to redesign high schools. The object is to strengthen college-and career-readiness by redesigning high school to focus on providing challenging, relevant experiences, and rewarding schools that develop new partnerships with colleges and employers to improve instruction and prepare students to continue on to postsecondary education or transition into skilled jobs.
· Proposes to strengthen and reform career and technical education to better align programs with the needs of employers and higher education.
· Proposes $260 million for a First in the World fund to spur the establishment, validation, and scaling-up of innovations that can decrease college costs and boost attainment rates; and reforms to Federal campus-based aid to reward colleges that set responsible tuition policy, deliver good value and quality to students, and serve low-income and Pell-eligible students well.
· Includes a $1 billion Higher Education Race to the Top (RTT) Competition that would fund up to 10 states to carry out projects that focus on several reforms, including sustaining state fiscal support, removing barriers that prevent innovative methods of student learning and new degree pathways, enhancing transparency designed to improve consumer choice, and supporting transferring between institutions of higher education.
· Proposes to fully fund the Pell Grant program for 2014-2015 and proposes a cost-neutral student loan reform that will set student loan interest rates based on market fluctuations by tying the interest rate to the 10-year Treasury note, and provide greater affordability for students in repayment by expanding the Administration’s Pay as You Earn Plan to all loan holders.
o Payments would be capped at 10 percent of a borrower’s prior-year discretionary income and forgiveness of remaining loan balances would take place after 20 years.
· Sustains funding for GEAR UP and TRIO to help provide support services for students from disadvantaged backgrounds to prepare for, enroll, and complete postsecondary education. Using available funds in 2014 for GEAR UP, the Department will run a competition that funds projects that aim to ensure students enroll at colleges that will help them meet their fullest potential.
CORPORATION FOR NATIONAL COMMUNITY SERVICE
The Budget provides $1.06 billion for 2014, roughly even with the 2012 enacted level which would support the service of approximately 82,000 AmeriCorps members across the US. It also provides $346 million for AmeriCorps State and National grants which funds the Segal AmeriCorps Education Award, the same as last year’s level.
The Budget…
· Invests $49 million in the Social Innovation Fund to test promising new approaches to major challenges, leverage private and philanthropic capital to meet these needs, and grow evidence-based programs that demonstrate measurable outcomes in the nonprofit sector.
· Proposes to reactivate the Volunteer Generation Fund with a focus on strengthening nonprofits’ ability to recruit, retain, and manage volunteers, and using volunteers to tackle national priorities such as integrating returning veterans and supporting military families.
· Continues support for School Turnaround AmeriCorps, a new partnership between the Department of Education and CNCS that places AmeriCorps members in the nation’s lowest-performing schools to help improve student performance.
ENERGY ISSUES
The Budget…
· Includes $200 million in one-time funding for Race to the Top (RTT) performance-based awards to support State governments that implement effective policies to improve energy efficiency and modernize the electricity grid.
· Provides $615 million to increase the use and reduce the costs of clean renewable power from solar, wind, geothermal, and water energy
· $184 million for the Department of Energy’s Weatherization Assistance Program.
ENVIRONMENTAL ISSUES & INTERIOR DEPARTMENT
The Budget provides $11.7 billion in discretionary funding for the Department of the Interior, an increase of over four percent above the 2012 enacted level.
The Budget…
· Provides $2.3 billion for the National Park Service, up from $2.2 billion provided last year
· Interior’s land management operations would receive $4.7 billion total, including $1.1 billion for the Bureau of Land Management; $1.3 billion for the Fish and Wildlife Service; and $2.3 billion for the National Park Service.
· For the first time ever, proposes mandatory funding for Land and Water Conservation Fund (LWCF) programs in the Departments of the Interior and Agriculture. These funds will assist in conserving lands for national parks, refuges, and forests, including collaborative projects for Interior and the U.S. Forest Service to jointly and strategically conserve the most critical landscapes while improving management efficiency. They will also support the President’s America’s Great Outdoors Initiative to promote job creation and economic growth by strengthening the Nation’s natural infrastructure for outdoor recreation.
o In 2014, $356 million is proposed to conserve lands in or near national parks, refuges, forests, and other public lands, including $169 million in collaborative LWCF funds for DOI and the U.S. Forest Service to jointly and strategically conserve the most critical landscapes.
o The Budget also proposes $15 million in LWCF funding to revive the Urban Parks Recreation and Recovery Program, which can help revitalize urban parks and increase access to trails, green space, and other recreational areas in the most underserved urban communities.
§ Other AGO programs include grant programs that assist States, Tribes, local governments, landowners, and private groups (such as sportsmen) in preserving wildlife habitat, wetlands, historic battlefields, regional parks, and the countless other sites that form the mosaic of our cultural and natural legacy.
§ They also include funds for operating national parks, refuges, and public lands, which are critical for conserving natural and cultural resources, protecting wildlife, and drawing recreational tourists from across the United States and the world.
· Proposes $41 million in Forest Service research on climate preparedness and resilience, climate change mitigation, bioenergy and biobased products.
· Proposes funding increases for DOI renewable energy development activities and related transmission infrastructure. This funding includes $100 million to maintain capacity to review and permit new renewable energy projects on Federal lands and waters.
· Continues the practice of fully funding the 10-year average cost of wildland fire suppression operations. The Budget also targets funding for reducing hazardous fuels near communities where these treatments are most effective at reducing risks.
· Supports Federal agency implementation of their first-ever climate change adaptation plans, which are helping agencies, under existing authorities and missions, better protect taxpayer investments and safeguard the health and safety of communities, businesses, infrastructure, and ecosystems in the face of extreme weather and other impacts of climate change.
HOUSING & URBAN DEVELOPMENT
Provides $47.6 billion for Department of Housing and Urban Development (HUD) programs, an increase of $4.2 billion, or 9.7 percent, above the 2012 enacted level.
The Budget…
· Funds the Community Development Block Grant (CDBG) program at $2.8 billion to assist State and local governments (entitlement communities mostly) in addressing local priorities and needs.
o CDBG is used for a wide range of community and economic development activities, such as public infrastructure improvements (approximately 33 percent of all CDBG funds), housing rehabilitation and construction (approximately 25 percent of funds), job creation and retention, and public services (e.g., child care). 70 percent of the CDBG formula grants are distributed to mainly urban areas (entitlement communities), and 30 percent is distributed to the States (non-entitlement communities).
· Provides $400 million for Choice Neighborhoods to continue to transform neighborhoods of concentrated poverty into opportunity-rich, mixed-income neighborhoods. This funding level, which is $280 million above 2012 enacted, will be used to revitalize HUD-assisted housing and surrounding neighborhoods through partnerships between local governments, housing authorities, nonprofits, and for-profit developers.
o A portion will be targeted to Promise Zones—high-poverty communities where the Federal Government will work with local leadership to invest and engage more intensely to create jobs, leverage private investment, increase economic activity, reduce violence and expand educational opportunities.
§ To further support Promise Zones, the Budget includes companion investments of $300 million in the Department of Education’s Promise Neighborhoods program and $35 million in the Department of Justice’s Byrne Criminal Justice Innovation Grants program.
o The Administration will designate Promise Zones through a transparent, competitive process that can draw on a number of resources in the Budget, including: using Department of Justice funding for local law enforcement and community leaders to reduce violent crime; leveraging Department of Housing and Urban Development grants to attract private investment to tear down distressed public housing and build new mixed income homes, while ensuring that low-income residents do not get displaced; and using Department of Education funding to improve educational opportunities and provide students and their families with a continuum of educational supports from cradle to college or career.
o In addition, the Budget supports direct Federal partnership with local leaders, helping them to navigate Federal programs, cut red tape, and use Federal resources more effectively.
· As part of the multiagency partnership between HUD, the Department of Transportation, and the Environmental Protection Agency, the Budget provides $75 million in Integrated Planning and Investment Grants to create incentives for communities to develop and implement comprehensive housing and transportation plans, such as updates to building codes, land use and zoning ordinances, that result in more resilient economic development, reduce energy consumption and greenhouse gas emissions, and increase affordable housing near public transit.
JUSTICE DEPARTMENT
The Budget…
· Provides $332 million for the Department’s Juvenile Justice Programs and includes evidence based investments to prevent youth violence, including $25 million to fund the Community Based Violence Prevention Initiative, which would provide grants to replicate successful community-based interventions to control shootings and other serious gang violence, and $4 million for the National Forum on Youth Violence Prevention, which provides assistance for selected communities across the Nation to develop and implement youth violence strategies.
· Provides $119 million for the Second Chance Act Grant program.
· Proposes $20 million for a Juvenile Justice and Education Collaboration Assistance program to help reduce juvenile arrests (and the “school-to-prison pipeline”) while improving school safety.
· Couples the formula Byrne Justice Assistance Grant and Juvenile Accountability Block Grant programs with competitive incentive grants that provide “bonus” funds to States and localities for better, evidence based use of formula funds.
· Includes $20 million for the Juvenile Justice Realignment Incentive Grants, which, in tandem with the $30 million reserved for Juvenile Accountability Block Grants, will assist States that are pursuing evidence-based, juvenile justice system alignment to foster better outcomes for young people, less costly use of incarceration, and increased public safety.
· Expands the Pay for Success initiative.
DEPARTMENT OF LABOR & WORKFORCE DEVELOPMENT
Provides $12.1 billion in discretionary funding for the Department of Labor, an increase of more than $20 million from the comparable 2012 level. The Budget includes an $80 million increase for the WIA Adult, Dislocated Worker, and Youth formula funds in recognition of the additional demands on state and local workforce partners. It also includes $847 million specifically for WIA Youth activities (an increase of $22 million) and $79.6 million for the YouthBuild program, a slight reduction over FY13 levels of $80.1 million.
The Budget…
· Provides $150 million for the Workforce Innovation Fund. The Fund tests new ideas that States and regions bring forward to implement systemic reforms and replicate evidence based strategies for training and helping workers find jobs.
o Within the Fund, $10 million is dedicated to building knowledge of which interventions are most effective for disconnected youth.
· Proposes a $12.5 billion Pathways Back to Work Fund to make it easier for unemployed workers to remain connected to the workforce and gain new skills for long-term employment. This initiative will support summer and year-round jobs for low-income youth, subsidized employment opportunities for unemployed and low-income adults, and other promising strategies designed to lead to employment
o $8 billion for subsidized unemployment for unemployed, low-income adults; $2 billion for summer employment and year-round employment opportunities for low income youth; and $2.5 billion for work-based employment strategies of demonstrated effectiveness.
· Proposes an $8 billion Community College to Career Fund jointly administered by DOL and the Department of Education to support State and community college partnerships with businesses and other stakeholders to build the skills of American workers; this is a successor initiative to the Trade Adjustment Assistance Community College and Career Training Grants, for which 2014 provides the final year of funding.
· Reforms Job Corps by closing a small number of centers that are chronically low-performing, identifying and seeking to replicate the practices of high-performing centers, and adopting cost-saving reforms. In addition, the Budget proposes steps to strengthen financial and contract oversight.
o The final methodology and the names of the three centers to be closed due to chronically low performance will be published in the coming weeks.
VETERANS AFFAIRS
The Budget…
· Supports the President’s proposed Veterans Job Corps initiative to put up to 20,000 veterans back to work over the next five years rebuilding and protecting America by leveraging our returning service members’ skills and talents as police officers, firefighters, and in conservation jobs.
· Proposes a redesign of veterans’ transition assistance in over 20 years. This new program, Transition GPS (Goals, Plans, and Success), will help service members more effectively capitalizes on the skills they have developed through their service. DOL is also providing increased access to intensive reemployment services for post-9/11 veterans, helping employers take advantage of tax credits for hiring veterans, and continuing its work to connect veterans with disabilities or other barriers to employment. DOD is also working to help service members and veterans better communicate to civilian employers the skills they learned.
TRANSPORTATION & TRAILS
Provides a total of $76.6 billion in discretionary and mandatory budgetary resources for the Department of Transportation, an increase of 5.5 percent, or $4 billion, above the 2012 enacted level. It also fully funds MAP-21, the latest transportation bill reauthorization.
The Budget…
· Requests $820 million ($808 provided in FY13) to support the Transportation Alternatives Program (TAP) to foster livable communities through policies and investments that increase transportation choices and access to transportations services.
o TAP provides funding for on-and off-road pedestrian and bicycle facilities, infrastructure projects for improving non-driver access to public transportation and enhanced mobility, community improvement activities, and environmental mitigation; recreational trail program projects; safe routes to school projects; and projects for the planning, design or construction of boulevards and other roadways largely in the right-of-way of former Interstate System routes or other divided highways.
· Proposes $50 Billion for “Fix it First” projects, to invest immediately in our Nation’s infrastructure with an emphasis on reducing the backlog of deferred maintenance on highways, bridges, transit systems, and airports nationwide.
· Includes $200 million of innovation-spurring transportation investments to fund communities that include enhanced resilience to extreme weather and other impacts of climate change in their planning efforts. Planning by these communities will be supported by a broader Administration commitment to help communities improve their resilience through direct technical assistance, provision of useful data and tools on projected impacts, and support for planning.
DISCRETIONARY CUTS OF INTEREST
· Brownfields Projects, Environmental Protection Agency – $10 million cut
· Community Services Block Grant, Department of Health and Human Services – $329 million cut
· HOME Investment Partnerships Program, Department of Housing and Urban Development – $50 million cut
· Low Income Home Energy Assistance Program, Department of Health and Human Services – $452 million cut
· National Wildlife Refuge Fund, Department of the Interior – $14 million cut
· Pest and Disease Programs, Department of Agriculture – $19 million cut
· Watershed Rehabilitation Program, Department of Agriculture – $15 million cut
· Wildland Fire Program/Hazardous Fuels Reduction, Department of the Interior – $87 million cut
· Conservation Stewardship Program, Department of Agriculture – $5 million cut
If you want to learn more about the budget, and read more in detail proposals from each agency, or line-by-line allocations, please the Office of Management and Budget website.