august 7, 2012 american association of school administrators
TRANSCRIPT
August 7, 2012
American Association of School Administrators
Congressional Context How did we get here? What is it? What does it mean? Talking Points What can I do? Resources
Source: National Journal, Field Guide to a Lame Duck, July 2012
Stems from Debt Ceiling Debate, Summer 2011
Resulted in Budget Control Act which, among other things, created bipartisan, bicameral Joint Deficit Commission
12 member committee tasked with identifying $1.2 trillion in cuts/savings over 10 years
Failed to produce plan, triggering sequestration
Sequestration = automatic, across-the-board cuts
Process ‘triggered’ in Jan. 2012, cuts will come Jan. 2013
Impacts almost all aspects of federal budget; ALL programs in USED except Pell
Initial CBO estimates placed sequestration cuts at 7.8%; more likely to be at 9.1%
Source: Bipartisan Policy Center
Source: Bipartisan Policy Center
FY13 Timeline poses challenges! Cuts would come in the middle of the fiscal year (July 2013
for schools, impacting the 2013-14 school year) Cuts will happen regardless of what Congress appropriates Dearth of information. Cuts come at the
‘program/project/activity’ level, a term that is largely undefined by departments.
Across-the-board cuts are problematic for many PPAs. As would be the case in education, most PPA accounts are nearly all personnel costs, and many include/would impact large procurement/construction projects
Unintended Costs/Consequences Jobs, Jobs, Jobs Increased per-unit procurement costs Increased unemployment insurance Recessionary pressures?
Remember the Title I and IDEA adjustments in Oct 2011? Similar concept, except deeper.
Cuts to USED will be between $3.5 and $4.1 billion
Estimated Education Impact at 7.8% level:Title I: $1.1 billion IDEA $978 millionPerkins:$136 millionHead Start: $590 million
Cuts will be CALCULATED in January 2013
Cuts will be MADE in July 2013 NO cuts for 2012-13 school year (with
the exception of Impact Aid) All cuts will be felt in 2013-14 school
year.
Cuts are coming, whether through sequestration or Congressional action
Congress could act to identify blend of spending cuts, revenue (taxes) and mandatory spending (Medicare) reform
Congressional action would likely still include cuts to education, but to a much lesser extent
Congress gave themselves the work of identifying$1.2 trillion in savings
If we get to sequestration, it is because Congress failed to act.
Sequestration is a blunt instrument, cutting all programs without considering demand, effectiveness, or return on investment.
Efforts to exempt portions of the budget (i.e., defense) simply amplify the severity of cuts to education
Contact your Senators and Representative and urge them to support Congressional efforts to pick up the work of the Super Committee
Use the Invoice on the ‘Resources’ slide to let your Congressional delegation know how the sequestration cuts would impact your district
Work with your Board to explain to the community what sequestration is and how it would effect your district
AASA Sequestration Resources:AASA Sequestration ToolkitAASA Legislative CorpsAASA Advocacy UpdateThe Leading Edge (policy/advocacy blog)Advocacy Twitter: @Noellerson, @SPudelski
Dan Domenech
Executive Director
Bruce Hunter
Associate Executive Director
Noelle Ellerson
Assistant Director, Policy Analysis &
Advocacy