Federal Education Funding Update

Noelle Ellerson AASA March 2013

Federal Education Funding

Budget vs. Appropriations Federal Fiscal Year runs Oct. 1 Sept. 30 FY13 started Oct. 1, 2012 FY13 dollars are in 2013-14 school year budgets Federal Budget sets overall funding level (the whole pie) Federal Appropriations determines programmatic funding level (our piece of the pie)

US Map: Federal Revenue in Local Edu Budgets

Budget Control Act (BCA)

Stems from Debt Ceiling Debate from Summer 2011 Among other things: Raised Debt Ceiling Created Super Committee tasked with identifying $1.2 trillion in savings over ten years Established spending caps for next ten years (starting with FY12) Required votes on balanced budget amendments

Sequestration
Stems

from failed Super Committee created

Sequestration & Education

Cuts took effect March 1 Cuts will total $3 billion Cuts will come in 2013-14 school year Final appropriations for FY13 do not avoid sequestration cuts; build budgets accordingly Every K-12 federal education program will be impacted

E-Rate and School Lunch are not cut, but they are thru FCC and USDA, respectively

Funding

Sequestration
It

happened! 5.1% Across the board, all K-12 programs, will impact you in 2013-14 school year
IMPACT

AID is immediate

Role of Sequester in pulling the level on flexibility re: IDEA MoE Still not resolved, still opportunity to get it fixed.

Funding

Federal Appropriations

FY13 started Oct 1, 2012 Current CR expires March 27 Separate from the Sequester Congress passed the final appropriations package (a mix of stand-alone bills and CRs) last week. Level funds education at FY12 levels and maintains sequestration. IDEA anomaly for state Maintenance of Effort

Funding

FY14 Budget Proposals

Presidents not expected until April 8 House Budget:

Reduces

funding to well below sequester levels Passed the House on party-line vote Doesnt resolve sequestration

Senate Budget
Eliminates

sequestration Passed the Senate late last week

Bottom line? House and Senate are so far apart that we know we are on a CR course for FY14, as well.

Sources: CEF Calculations based on An Update to the Economic and Budget Outlook: Fiscal Years 2013 to 2023, CBO, February 2013; OMB Report Pursuant To The Sequestration Transparency Act Of 2012, September 2012; the American Taxpayer Relief Act of 2012, January 2013; House Budget Committees Fiscal Year 2014 Budget Resolution Discretionary Spending table and Senate Budget Committees FY 2014 Budget Resolution Discretionary

Function 500 Funding

an 10-year total = $906 billion; Murray 10-year total = $1,130 bi

11

Other

ESEA School Nutrition Rural Education Education Technology/ERate Vouchers/Charter s Epinephrine Pens Early Education

Perkins/Career Tech IDEA Full Funding From Sashas Portfolio:

Seclusion/Restrain t IDEA and Due Process Bullying School Safety

Contact Your Advocacy Team

Noelle Ellerson @Noellerson Sasha Pudelski @Spudelski

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