President’s FY 2013 Budget Impact on Programs Important to States Federal Funds Information for States

Food and Nutrition Funding changes – Supplemental Nutrition Assistance Program (SNAP) Restores benefit cuts (moves sunset from 10/31/13 to 3/31/14) Extends temporary elimination of time limits for able-bodied adults without dependents until 9/30/2013

Education Consolidates programs – ESEA reauthorization proposal: 38 programs consolidated into 11 new programs Program changes – Name changes (i.e. Title I Grants to LEAs, School Improvement Grants) New Programs and Recycled Proposals – Presidential Teaching Fellows – Higher Education (RTT-College Affordability and Completion and First in the World Fund) – American Jobs Act Proposals

Education, Cont. Funding Changes – Title I Rewards: 2% set-aside of state’s Title I funds – Effective Teachers and Leaders: 25% reserved for Department of Education (ED) to build evidence on teacher quality, invest in STEM, and enhance school leadership – Vocational Rehabilitation and Adult Education set-asides for Workforce Innovation Fund (WIF) – Increase maximum Pell award to $5,636

Labor Funding Changes – Workforce Investment (WIA) Doubles funding for WIF ($100m); small set- asides from Education programs Maintains governor’s set-aside at 5% – Unemployment Insurance (UI) $15 million increase in funding for REAs -7.4% decrease in base state administration funds

Labor, Cont. Recycled Proposals – UTF Solvency: Delays FUTA credit reduction and accrual of interest for two years Increases federal wage base to $15,000 in 2015 and simultaneously lower FUTA tax rate. – 10-month extension of EUC and 100% federal financing of EB – Funding to expand Short-Time Compensation (STC) programs – American Jobs Act proposals

Health and Human Services Temporary Assistance to Needy Families (TANF) – Restores TANF supplemental grants (paid for by reducing/restructuring TANF contingency fund) Title IV-E Foster Care – $252m foster care reform proposal, few details – Changes treatment of child support payments

Health and Human Services, Cont. Child Support Enforcement – New child support and fatherhood initiatives Few details, appears to be phased-in over several years – Initiatives to increase and improve collections ACA Prevention and Public Health Fund – Rescinds $4 billion in future years

Medicaid Program Increases – Extend TMA and QI Increase Program Savings – Focus on prescription drugs – Reducing waste, fraud, and abuse Future Changes – Blended FMAP (2017) – Provider taxes (phase-down provider tax threshold beginning in FY 2015) – Maintain DSH reductions in FY

Homeland Security

Justice

Transportation President’s budget lays out six-year proposal for reauthorizing surface transportation programs Designates all surface transportation funding as mandatory Converts existing Highway Trust Fund into a new Transportation Trust Fund

Transportation, Cont. Highways – $700 million for Transportation Leadership Awards – $500 million for TIFIA program

Transportation, Cont. Mass Transit – Transportation Leadership Awards program starting in FY 2014

Transportation, Cont. Rail – Financed with dedicated funding through a new Multimodal Account of the Transportation Trust Fund

Transportation, Cont. National Infrastructure Bank (NIB) – Proposes independent NIB for large-scale transportation, water, and energy infrastructure projects – Would fund projects through loans and loan guarantees – Would finance no more than 50% of total project costs National Infrastructure Investments – $500 million for competitive grants under TIGER program

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