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Federal Budget News Alert

Thursday, April 11, 2013   (0 Comments)
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Yesterday's federal budget news was NOT GOOD. While all details are yet to be fully known, we do know programs critical to state public health agencies have been eliminated, drastically cut or zeroed out. What we do know is the Preventive Health and Health Services Block Grant has been eliminated in the President's Budget and also within the Centers for Disease Control and Prevention's (CDC) Congressional Justification. We do know that under the President's proposal, CDC budget authority would be cut by $439 million (program levels cut by $276 million); the share of the Prevention Fund allocated to CDC would fall by about $54 million; and within the proposed Fund allocations, while there are some increases, there are some significant decreases, including a few FY 2012 allocations proposed to be zeroed out for FY 2014. The Community Transformation Grant program is proposed to be funded at $146 million (including $136 million from the Prevention Fund), down from $226 million in FY 2012, and CDC chronic disease and health promotion funding would be cut by $175 million.

The President's FY2014 budget and supporting documents are available for your review detailed Congressional Justification document and other supporting summaries and charts from CDC are also available.

Adding further to this bad news, the Office of Management and Budget has issued an FY 2014 "sequestration preview" report to Congress. It can be viewed here. Based on current law, if sequestration remains in effect for FY 2014 there will be $91 billion reduction in the discretionary caps and a sequestration of $18 billion in nonexempt mandatory spending (cuts to the nondefense mandatory programs are expected to be 7.3 percent). The defense discretionary cap will be cut by $54 billion and the non-defense discretionary (NDD) cap by $37 billion.

As you might guess, the House has set very different discretionary caps. The House budget has NDD absorbing full responsibility for the $91 billion sequestration cut, and exempts defense. The Senate discretionary caps and sequestration cuts are closer to this OMB report--which ends up at a post-sequestration NDD cap of about$54 billion more than the House level. What that means is there will be a dramatic difference between the House and Senate NDD allocations (and thus the appropriations bills) if the chambers are unable to come to an agreement on the caps (which is the likely scenario) and have to "deem" different levels.

Much more to come.

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