League of California Cities Federal Briefing October 10, 2012 Federal Sequestration Understanding Impacts to Your City & How to Take Action

League of California Cities Federal Briefing Federal Sequestration: Impact on California Cities 1.Federal Sequestration Summary and Projected Impacts 2.Advocacy Efforts Underway on the Sequester 3.What You Can Do to Help

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League of California Cities Federal Briefing League Legislative Advocates Dorothy Holzem Associate Legislative Representative Dustin McDonald League of California Cities Federal Advocate

League of California Cities Federal Briefing FY 2013 Appropriations August 2011 – Congress approves the Budget Control Act  Set automatic spending caps on federal programs  Created the Joint Select Committee on Deficit Reduction (Super Committee) Super Committee failure results in federal sequestration  $1.2 trillion in across-the-board cuts to federal programs through  50% of cuts to come from non-defense discretionary programs.  50% of cuts to come from defense programs. Federal Sequestration Background

League of California Cities Federal Briefing Sequestration would impose cuts to federal programs that benefit local governments in FY 2013: ProgramProjected Cut  Community Development Block Grant (CDBG)8.4%  HOME Investment Partnership 8.4%  COPS8.2%  Byrne Justice Assistance Grants8.2%  Clean Water State Revolving Loan Fund (CWSRF)8.4%  Water Infrastructure Funding (Army Corps of Engineers)8.2% Sequestration would reduce funding for these programs by an estimated 28% between FY 2013 and FY Impacted Programs

League of California Cities Federal Briefing Additional Impacts  $739 million in highway and road funding is vulnerable to federal sequestration  National Defense Programs – California stands to lose $2 billion in defense contract revenue  135,000 private-sector jobs and $11.7 billion in gross state product (GSP)

League of California Cities Federal Briefing Congress will renew debate on reorganizing the sequester in November. Six week legislative session to make revisions to the sequester will begin on November 12. Status of Sequester

League of California Cities Federal Briefing Strong and ongoing advocacy effort underway on avoiding defense cuts. Nascent effort to protect local programs. Advocacy on the Sequester

League of California Cities Federal Briefing Deficit reduction should not shift costs to local governments.  83.7 percent of the nation's population resides in metropolitan areas.  Metro areas have been responsible for nearly 88 percent of the recovery in the nation's real GNP and over 83 percent of employment growth to date. Non-defense discretionary (NDD) programs are successful and productive, leveraging significant funding from non-federal sources to help spur economic recovery. Achieving deficit reduction cannot be done solely through cuts to local government programs.  NDD programs are account for less than 1/5 of the total federal budget.  90% of federal deficit reduction over the last two years has focused cutting NDD spending.  Even if discretionary spending were reduced by 100 percent, the federal government would still face a $500 billion annual deficit. Key Points

League of California Cities Federal Briefing What Can You Do? This is a critical time for cities to weigh in with your members of Congress and Senators. Urge California’s 53 members of Congress and 2 Senators to hold the line on funding for our priority programs to sustain national economic growth. We need the help of all of California’s cities to convey this message through:  Direct contact  Letters  Op-Eds

League of California Cities Federal Briefing Describe how funding from these programs has helped your city:  Increase or retain jobs  Leverage private or state funding  Help small businesses  Support local economic expansion  Be specific Focus on Program Benefits

League of California Cities Federal Briefing Describe how additional cuts to these programs would impact your city:  Local infrastructure projects delayed or eliminated  Local social service projects reduced or eliminated  Employee layoffs  Support to small businesses Focus on Economic Impacts

League of California Cities Federal Briefing Refer your members of Congress to leading bipartisan studies on deficit reduction that contain recommendations. Reiterate the message that local programs have already been cut severely over the past two federal fiscal years and negative economic impacts have resulted. Be Prepared for the Discussion

League of California Cities Federal Briefing Members of Congress are home in their districts campaigning through election day November 6.  Talk to them.  Write them.  Pass resolutions and share them.  Publish Op-Eds. Start Today!!!

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League of California Cities Federal Briefing League Resources To access additional information on this material or the advocacy resources discussed on this webinar, visit or contact League staff at