Budget Facts and Talking Points to Share with Congressional Leaders

The budget process is complex and filled with arcane rules and complicated precedents. Over the past seven years, Congress has passed and the president has signed a number of so-called budget control acts designed to limit overall spending and reduce the deficit and the debt. As a result, the budgeting process became even more complicated.

The Budget Environment

Since the Budget Control Act of 2011, various budget control acts have placed caps on spending, meaning that Congress could appropriate no more than a specific dollar amount each year. And each year, Congress is supposed to appropriate a lesser amount than the year before – to the extent feasible.  This is not always the case and sometimes Congress amends the law to allow for increases in spending.

The trend, however, has been to spend less; so much less that since 2011 non-defense discretionary programs have been cut by 16 percent. These cuts have impacted the Departments of Transportation, Housing and Urban Development, Health and Human Services, Labor, Commerce, Education, Interior, Treasury, Veterans, Agriculture, and Justice, and the Environmental Protection Agency – all of which are funded by the non-defense discretionary budget. If the president has his way, these departments and the programs they implement – that are important to cities, counties, and regions – will be cut by 25 percent, from $612 billion in fiscal year 2011 to $462 billion in fiscal year 2018.

Every effort is being made to change the direction of the conversation so that these additional cuts do not occur. And to be clear, this objection has nothing to do with the increases proposed to the defense budget. Rather they have to do with the fact that at some point the amount of money invested in non-defense discretionary programs may be too little to enable them to achieve their missions.

As House Appropriations Committee Chair Rodney Frelinghuysen (R-NJ) said, and I paraphrase, non-defense discretionary programs have been cut to the point where there is nothing left to cut without completely undermining the ability of these programs to carry out the mandate Congress gave them.

Budget Facts
  1.  In March the president introduced the outline for his fiscal year 2018 budget proposal. In May he will introduce a more complete version of his budget.
  2. Over the next month, Congress will develop its own budget resolution for fiscal year 2018, taking into account the president’s priorities and their own. The budget resolution developed by the House and Senate will be the framework for the appropriation bill or bills that Congress adopts for fiscal year 2018 (which begins October 1, 2017).
  3. Under current budget rules established by the 2011 Budget Control Act, funding for defense and non-defense discretionary programs must be about equal, and any increases or decreases in funding must be the same for both. A $54 billion increase in defense spending, for example, must be met by a $54 billion increase in non-defense spending; something that in Washington parlance is called
  4. Non-defense discretionary programs are funded through the non-defense discretionary portion of the federal budget, and represent approximately half of the entire discretionary budget. The other half includes spending for defense.
  5. The president, in his fiscal year 2018 budget proposal, would undo the parity requirement.
  6. The proposed budget would increase defense spending by $54 billion and decrease non-defense discretionary spending by $54 billion to offset the defense budget’s increase.
  7. Such a reduction in funding would devastate non-defense discretionary programs operated by the Departments of Transportation, Housing and Urban Development, Health and Human Services, Labor, Commerce, and Agriculture.
  8. Even without the president’s proposal, the sequestration rules established by the Budget Control Act of 2011 would require the Administration to sequester, or essentially confiscate $3 billion that Congress appropriated for non-defense discretionary programs in fiscal year 2018.
Talking Points for Congress

If you take the opportunity to meet with your congressional delegation when they are in their districts/state during recess (Saturday, April 8 – Sunday, April 23), tell them:

“We need a strong civil society where the connection between different people and groups is firm and vibrant, not brittle and divided. We need to defend against weaknesses within and enemies without, using the tools of civil society and hard power. We don’t have to pick one over the other.”

Gen. Stanley McChrystal, The New York Times (on the subject of public broadcasting)

 


I would argue that the same can be said for the broad swath of non-defense discretionary programs: they contribute to a strong civil society and the choice should not be one over the other.

  1. Non-defense discretionary programs help us build a stronger, healthier, more integrated, and more secure nation. This is a critical point to make in response to the claim that we need to increase defense spending and decrease non-defense spending to ensure that we are safe and secure. Non-defense discretionary programs contribute substantially to national security by ensuring that our roads and bridges, water, and other aspects of our infrastructure are safe and secure; and our residents have the necessary skills to meet the needs of employers so that everyone is able to participate in civil society.
  2. Regional councils do not object to increasing defense spending by $54 billion per year if Congress, the Administration, and military services deem that such an increase is necessary to ensure the nation’s defenses and security.
  3. Regional councils object to cutting non-defense discretionary programs by $54 billion per year to offset the increase in spending for defense programs.
  4. Cuts to non-defense discretionary programs will result in:
    • Substantial cuts across the board, to programs that are important to regions, counties, and cities within your congressional district/state;
    • The elimination of housing assistance, CDBG, LIHEAP, and EDA; and
    • Significant reductions in workforce development, aging, and other human services programs.
  5. The caps on spending and the sequestration requirements of the Budget Control Act of 2011 have made major cuts to non-defense discretionary funding. To date, non-defense discretionary programs will have been cut by more than 16 percent since 2010, making it increasingly difficult to continue to operate these programs in the way Congress and the president intended when the programs were enacted into law.
  6. We urge Congress to find a solution that, at a minimum, maintains parity between defense and non-defense spending, by upholding the requirements of the 2011 Budget Control Act.

Take Action! Tell Congress: Don’t Cut Non-Defense Discretionary Programs

Now is the time to take action.
Now is the time to let Congress know that programs like the Community Development Block Grant (CDBG), Low Income Home Energy Assistance Program (LIHEAP), or the Transportation Investment Generating Economic Recovery (TIGER) grant program must not be cut.

The president’s fiscal year 2018 budget, if adopted, would substantially reduce or eliminate programs important to regional councils. The upcoming congressional recess (Saturday, April 8 – Sunday, April 23) provides an excellent opportunity to meet with your congressional delegation and tell them how much the federal funds matter to cities and counties, and how difficult it would be if these programs were eliminated.

Arrange meetings with your senators and representatives to educate them about your region, highlight your achievements, and show them how important federal funds are to the success of those programs. Provide them with concrete examples of the impact that potential cuts will have on these programs. Articulate specifics like: If we lose our TIGER grants, we will not be able to complete X number of road projects and we will need to terminate X number of employees (see step 3).

Here are a few steps to guide you in your advocacy efforts:
  1. Be sure to take one of your elected officials to each meeting. Our experience is that this can be very helpful and will add credibility that can be critical to a meeting’s success.
  2. Once you have gotten a commitment from your local elected officials, contact the appropriate congressional office to set up a meeting. Tell them you would like to meet with your senator/ representative, and ask them for only a small amount of their time. If they push back and try to assign you to a staff person, tell them you will be bringing one or more local elected officials who would very much like to meet with the senator or representative, and that the issues you want to speak about are very important for your region. Ultimately, it’s okay if you have to meet with a staff person, but at this particular time the senator or representative would be best.
  3. Be prepared. They need to know how significant these potential cuts are to the future of so many of the programs you operate. They need to know how your community improvement efforts would falter if CDBG were eliminated. They need to know how many households will go without heat this winter because the LIHEAP program was eliminated. They need to know that an important intersection improvement project will not get done if TIGER grants are done away with.
  4. Bring simple, straightforward briefs that summarize the programs your region is implementing, describe what your regional council does, how you do it, and why each program is so important. If you have brochures and annual reports bring those along as well, but don’t make these materials the focus of your meeting.
  5. See what commitments you can get them to make at the conclusion of the meeting. If they respond positively to any or all of your budget and appropriations requests, ask them if they are willing to be a congressional champion for one or more of the issues. If they are willing to be a champion, please ask them if we, NARC, can reach out to their Washington office, and to whom.
  6. Ask your senator or representative to identify a staff person for future contact.
  7. Invite your senator or representative to one of your program sites, whether it is a road building project, a new business that resulted from economic development activities, a dangerous intersection that is being fixed, a senior day care program, or something else. You want them to see firsthand what those federal funds that they appropriate are achieving, and how much the federal funding you receive is making a difference in the region.
  8. Thank them for the meeting and the support they agreed to provide.
  9. Send a thank you email.

If you obtain a meeting, please share that with NARC. We would appreciate knowing that you had a meeting, with whom you met, what was discussed, and what was the outcome. Please email this information to Neil Bomberg, senior policy advisor, at neil@narc.org.

In the next few days we will provide talking points to help you simplify your advocacy work and make your meetings more productive.

The Problem with Block Grants

I know. We all like block grants. They give us the flexibility we say we need to effectively implement programs, and they come with few strings attached. Such is the case for the Community Development Block Grant (CDBG); youth, adult, and dislocated programs under the Workforce Innovation and Opportunity Act (WIOA); the Community Services Block Grant (CSBG); and the Low Income Home Energy Assistance Program (LIHEAP) to name a few.

In large part we are not wrong. All 50 states and thousands of localities need flexible funding to address local issues in ways that are not hamstrung by laws, rules, and regulations; and reflect state, region, and local needs.

What we often don’t get is the connection between block grants and funding cuts, and the connection is very strong. According to the Center on Budget and Policy Priorities (CBPP), “overall funding for block grants targeted on low- and moderate-income people—including both discretionary and mandatory programs—has shrunk by 27 percent in inflation-adjusted terms and 37 percent after accounting for inflation and population growth. The Trump cuts would sharply exacerbate those declines” by eliminating four block grants entirely. The programs that the Administration would like to eliminate are the:

  • Low Income Home Energy Assistance Program (LIHEAP), which helps low-income households—including many poor seniors—pay heating bills (with current funding at $3.4 billion);
  • Community Development Block Grant (CDBG), which supports housing, community facilities, economic development, and social service projects, mainly for low- and moderate-income residents ($3 billion);
  • HOME program, which helps develop and preserve affordable rental housing and repair homes of low-income homeowners ($948 million); and
  • Community Services Block Grant (CSBG), which provides anti-poverty services through local non-profit and public agencies ($714 million) and is so important to coordination between faith groups, local governments, private companies, and nonprofits in addressing the needs of the poor.

The Community Service and Employment Program (CSEP) for seniors would also be eliminated and the president’s proposal would likely cause cuts as large as 50 percent to Workforce Innovation and Opportunity Act youth, adult, and dislocated worker programs. Also on the chopping block may be the Social Services Block Grant, which provides much needed funds to states and localities for adult programs and to better connect programs that are not typically configured to work together.

But why do we pay such a high price for programs that Congress and the president initially agreed upon? The answer is rather obvious. It has become the norm for Congress to call for empirical evidence that the programs they fund are actually working. But it is the very flexibility that is built into these block grants that is also their downfall. How do you scientifically evaluate CDBG when every program in every entitlement city and balance of state may develop and implement very different programs that do not produce similar outcomes and are not measureable in the same ways. You can’t. So instead of acknowledging this difficulty and looking at different methods of analysis such as case studies, Congress chips away year after year at these programs until there are insufficient resources to implement successful programs.

So, you may ask, what can I do with this information?

Here is What You Need to Know:

 President Trump’s “skinny” budget would eliminate four discretionary block grants that mainly serve low-income people;

  • These cuts would come on top of years of deteriorating funding for block grants. If these cuts are implemented, your already diminished federal resources would be further reduced, inhibiting implementation  of these very important programs;
  • What has happened and may continue to happen is an indication of the danger of block-granting social programs; and
  • Programs funded through block grants are in a catch-22 situation; the very reason they are so desirable—state and local flexibility and reduced administrative burdens—are the very reason they are likely to be cut. “Scientific evidence” of their success is difficult to develop since states use these grants in very different ways that result in very different outcomes.
And This is What You Need to Do:
  • Monitor the legislative updates that NARC, NACo, and NLC issue, and act on them. Your involvement in our advocacy efforts is the only way we can succeed.
  • Reach out to your senators and representatives to educate them about these programs and how important they are for your region;
  • Document in very specific terms what would happen to your region if these cuts went through. For example, how many people would not be able to heat their homes if LIHEAP were terminated; how many people would be turned away from job training assistance if a 50 percent budget cut went through; or how many significant projects within your region would have to shut down because these CDBG funds would not be available;
  • Invite them to see first-hand the results of these programs. Make them a part of any formal ceremonies such as ribbon cuttings or awards ceremonies, regardless of the magnitude of the project;
  • Meet with them over the upcoming Passover/ Easter recess, which runs from April 10 through 21, to personally share with them your successes stories and educate them about the funding sources you rely on; and
  • Do not allow them to pit one program against another by asking you, “If we fund CDBG, which programs should we cut so that we end up with the same budget reduction as is proposed in the president’s budget.”

The author would like to thank the Center on Budget and Policy Priorities and the Washington Post for much of the data and information that appears in this blog.

Whispers of a Shutdown

Washington’s attention is turning to the April 28 deadline for fiscal year (FY) 2017 spending bills. Congress has barely a month to either finish its work on outstanding appropriations bills, or pass another continuing resolution (CR). The timeline is particularly challenging due to a two-week Congressional recess in April. Just three in-session weeks are available between now and the CR’s expiration.

At least two issues complicate the completion or extension of this year’s spending bills. Some in Washington are starting to whisper the dreaded “s” word (shutdown).

1) Trump Administration changes to funding levels.

The CR is often an extension of the previous year’s funding levels. The Trump administration, however, has proposed significant increases for military and military-related spending. This would force cuts of as much as $18 billion in the discretionary budget. These cuts would come from the remaining few months of the fiscal year, not the entire year, making the situation even more challenging.

As an example of the administration’s proposed cuts, a portion of the $18 billion spending reduction would come from the transportation program:

  • Immediately eliminate the TIGER discretionary grant program (estimated FY17 savings: $500 million)
  • No new full funding grant agreements through the Federal Transit Administration’s (FTA’s) small starts and new starts programs (estimated FY17 savings: $450 million)
  • A reduction to the Army Corps of Engineers water resources program (estimated FY17 savings: $100 million)

The FTA cuts are perhaps the most interesting. Even if Congress chooses to continue funding the program at historic levels (or higher, even), it likely will not matter. It is up to the administration to sign the long-term funding agreements, and it has signaled that it will honor previous funding agreements but not sign new ones. Additional money could be provided, but likely will not be spent.

2) Potential dust up over Planning Parenthood funding.

The House’s failure to pass an Obamacare repeal last week leaves the defunding of Planned Parenthood an open issue. The administration and House conservatives, in particular, hope to resolve this quickly. Some members that opposed the Republican health care bill would also oppose spending bills that fail to end Planned Parenthood funding. This politically charged issue could force Speaker Paul Ryan (R-WI) to choose: work with Democrats to keep the government functioning, or shut down the federal government. If a House bill passes that does defund Planned Parenthood, it will assuredly not pass in the Senate. A stalemate on this issue is highly likely, increasing the odds of a shutdown.

This is sure to become a major story in coming weeks.