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NADO Releases Presentation on President’s Fiscal Year 2014 Budget

NADO Admin — Fri, 19 Apr 2013 20:59:37 +0000

The National Association of Development Organizations (NADO) has released a presentation on the President’s FY2014 budget request. The presentation includes a summary of the President’s budget as well as an in-depth look at federal programs important to regional development organizations and local governments.

NADO’s comprehensive budget report will be released to members on Monday, April 22. Click here to view the presentation. Click here to download the presentation video.

Upcoming Webinar: An Analysis of the President’s FY2014 Federal Budget (April 18)

NADO Admin — Mon, 15 Apr 2013 18:30:27 +0000

On Thursday, April 18 at 2:00 p.m. (EST), NADO will hold a special webinar, An Analysis of the President’s FY2014 Federal Budget. During the webinar, NADO staff will provide an in-depth analysis of the FY2014 budget. As our nation faces unprecedented challenges and budget deficits, learn how the new budget is expected to impact regional planning and development organizations and the federal programs that support their efforts.

Click here to register for the webinar

Congress Advances Continuing Funding Resolution; Avoids Government Shutdown

NADO Admin — Fri, 22 Mar 2013 20:30:08 +0000

On March 21, the U.S. House approved the final version of a Continuing Resolution (CR) by a vote of 318-109 that will find the federal government through the end of September. The bill (H.R. 933) was originally offered in the House of Representatives, and continued funding for most government agencies at FY 2012 levels. The FY 2013 Department of Defense and Veterans Affairs appropriations bills were added, providing additional guidance and new funding levels. H.R. 933 was taken up by the Senate, where the FY 2013 Agriculture, Homeland Security and Commerce-Justice-Science appropriations bills were added.

The Commerce-Justice-Science Appropriations bill that was added to the CR contains new funding levels for the Economic Development Administration. A detailed summary of the House CR and its effect on EDA can be found here.

The measure now goes to the President, which he is likely to sign into law. You can view the full text of H.R. 933 here.

House Appropriations Leadership Announces Plans for FY 2013 Spending Bill

NADO Admin — Sun, 17 Feb 2013 23:33:45 +0000

Last week, U.S. House Appropriations Committee Chairman Hal Rogers (R-KY) announced plans to introduce legislation to address government spending for the remainder of FY 2013. Chairman Rogers indicated he will draft a bill extending the current Continuing Resolution (CR) through September 30 for most government agencies. In addition, he plans to attach the FY 2013 Defense and Veterans Affairs appropriations bills, already agreed to by the House and Senate, in order to provide these agencies more direction on how to implement spending priorities. Senate Appropriations Chair Barbara Mikulski (D-MD) has indicated she is open to discussing this proposal. It is unlikely that any legislation regarding the remainder of FY 2013 spending will be considered before the current CR expires on March 27.

President Asks Congress to Delay Sequester

NADO Admin — Fri, 08 Feb 2013 20:22:17 +0000

On February 5, President Obama asked Congress to pass a temporary package of spending cuts and tax reforms that would delay the across-the-board cuts to federal spending scheduled to occur on March 1, 2013. While the president did not offer any specific proposals on taxes or spending, House and Senate leaders are considering alternatives to delay sequestration. Under current law, sequestration would cut spending by $85 billion starting on March 1. The Office of Management and Budget (OMB) has announced that defense spending will face a 7.3 percent reduction in funding while non-defense programs will be cut by 5.1 percent. Additionally, Congress could include changes to the sequester cuts in an overall spending package for the remainder of FY2013 or through a more comprehensive agreement on government spending and taxes. The current Continuing Resolution expires on March 27, three weeks after the sequester cuts take effect. Click here to view the transcript of the President’s speech.

Sequester Cuts Likely to Take Effect March 1

NADO Admin — Fri, 01 Feb 2013 21:11:58 +0000

This week, Congressional leaders have given little indication that Congress will prevent or postpone the automatic, across-the-board sequester cuts to federal spending scheduled to occur on March 1, 2013. Under current law, sequestration would cut spending by $85 billion starting on March 1. The Office of Management and Budget (OMB) has announced that defense spending will face a 7.3 percent reduction in funding while non-defense programs will be cut by 5.1 percent. Congress could include changes to the sequester cuts in an overall spending package for the remainder of FY2013 or through a more comprehensive agreement on government spending and taxes. The current Continuing Resolution expires on expires on March 27, three weeks after the sequester cuts take effect.

Senate Passes Bill Suspending Debt Ceiling until May

NADO Admin — Fri, 01 Feb 2013 21:11:00 +0000

On January 31, the U.S. Senate passed H.R. 325, commonly known as the No Budget, No Pay Act, which extends the federal debt limit through May 19, preventing any threat of a government default before that date. Extending the debt ceiling ensures that the Treasury Department will be authorized to issue new debt so that current government obligations continue to be paid. A default of any type would likely have had extremely negative impact on the U.S. and global economy. The bill also contains a provision blocking the pay of House and Senate members if their respective chambers do not produce a budget resolution by April 15, as required by law. On January 23, the U.S. House passed H.R. 325, which now goes to President Obama who is expected to sign the measure. Click here to view the full text of H.R. 325.

House Passes Bill Suspending Debt Ceiling until May

NADO Admin — Fri, 25 Jan 2013 19:28:28 +0000

On Wednesday, the U.S. House of Representatives passed H.R. 325, commonly known as the No Budget, No Pay Act. Most importantly, the bill extends the federal debt limit through May 19, preventing any threat of a government default before that date. Extending the debt ceiling ensures that the Treasury Department will be authorized to issue new debt so that current government obligations continue to be paid. A default of any type would likely have had extremely negative impact on the U.S. and global economy.

The bill also contains a provision blocking the pay of House and Senate members if their respective chambers do not produce a budget resolution, as required by law. House leaders included this provision because the Senate has failed to adopt a budget resolution for three years. Budget resolutions, while not carrying the force of law, help both chambers set spending priorities and enable a more predictable and efficient appropriations process. When the annual spending bills are not completed and the government relies on continuing resolutions, long-term planning for any agency or organization that receives federal funding is extremely difficult. The Senate has indicated it will pass H.R. 325 and President Obama has indicated that he will sign the legislation. Click here to view the full text of H.R. 325.

President Obama’s 2014 Budget and the Debt Ceiling

NADO Admin — Fri, 18 Jan 2013 21:30:13 +0000

On January 14 the White House sent a letter to House Budget Committee Chairman Paul Ryan stating that the president’s FY2014 budget will not be submitted by February 4, as required by law. The White House has indicated that the lengthy negotiations over the “fiscal cliff” at the end of 2012 made preparing the FY2014 budget difficult. Congress and the White House have yet to complete the FY2013 budget process, relying instead on a Continuing Resolution (CR) that will continue government funding through March 27, 2013. Additional legislation will be required to fund government operations through the end of the fiscal year which ends September 31. The White House anticipates releasing the FY2014 budget in early March. As always, NADO will provide a comprehensive analysis of the president’s budget the week of its release.

While the White House is working on the FY2014 budget, lawmakers continue to discuss the imminent approach of the statutory debt ceiling. Under current law, the U.S. Government is only authorized to borrow $16.4 trillion. Without increasing this cap, the Treasury Department would not be allowed to borrow money to pay current government debts, leading to a possible government shutdown or a default on the national debt. Some Republicans in Congress are insisting on spending cuts or entitlement reforms to match an increase in the debt ceiling. At a press conference on January 14, President Obama insisted that he would not negotiate with Republicans over including any additional items in the debt ceiling, instead demanding an outright increase. The U.S. Treasury Department has indicated that the debt ceiling will be reached between late February and early March.

Congress Passes Agreement to Avoid Fiscal Cliff; Delays Sequester Cuts and Extends Farm Bill

NADO Admin — Wed, 02 Jan 2013 17:25:27 +0000

On January 1, Congress passed a last minute deal to avoid the fiscal cliff. The agreement, known as the American Taxpayer Relief Act (Senate amendment to H.R. 8), includes tax rate increases for families who earn more than $450,000 and individuals who make more than $400,000 a year. The middle-class Bush tax rates for families and individuals making less than $400,000 will remain unchanged. However, the payroll tax cuts were not extended and expired on January 1. Payroll tax rates will return to 6.2% from 4.2% with a cap of $2,200 regardless of income.

The Senate approved the American Taxpayer Relief Act early Monday morning by a vote of 89 to 8. The package was sent to the House of Representatives, which passed last night by a vote of 257 to 167. The bill now heads to President Obama, who is expected to sign the bill into law today.

Major Provisions:

Permanent extension of the 2001 and 2003 Bush tax cuts for personal income tax rates below $400,000 per year and couples with incomes below $450,000
Delays 8.2% sequester cuts to federal agencies for two months
Extends 2008 Farm Bill provisions for one year
Extends federal unemployment benefits

Click here to view a detailed summary of the American Taxpayer Relief Act.

What does this mean for RDOs and local governments?

With the passage of the fiscal cliff deal, federal spending on programs relevant to NADO remains the same for at least another two months. The U.S. Government is still operating under a Continuing Resolution or “CR” at FY2012 federal spending levels until March 27, 2013. In two months, the sequester cuts will take effect as scheduled unless Congress can pass an alternative debt savings measure. Congress still has to address the debt ceiling and continue work on the FY2014 federal budget. It is possible that Congress will pass another six-month CR to extend current federal spending levels for the remainder of FY2013. Click here to view NADO’s CR Federal Budget Chart.