NATIONAL ASSOCIATION OF DEVELOPMENT ORGANIZATIONSREGIONAL STRATEGIES. PARTNERSHIPS. SOLUTIONS

June 8, 2012 ● Executive Directors Leadership Forum ● Park City, Utah

Federal Legislative Report:Politics, Budget, and Policy

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Strengthen local governments,

communities and economies

through the regional

strategies, partnerships, and

solutions of the nation’s

regional development

organizations

About NADO

Jobs and Sustained Economic Growth. Modern Infrastructure Assets.

Workforce Readiness. Quality of Life. Vibrant Communities.

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NADO Federal Policy Agenda

White House and Hill Review of Regional Development Programs

EDA Appropriations and Reauthorization

SAFETEA-LU Reauthorization, with MPO and RPO Provisions

HUD Community Development Block Grant (CDBG) Funding

Key programs such as Fed-State Commissions, WIA, SBA and EPA

FEMA Support for State and Local Preparedness and Response

HUD-DOT-EPA Sustainable Development Initiative

USDA Rural Development in 2012 Farm Bill

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A Sense of Politics…

“Politics is the art of postponing decisions

until they are no longer relevant.”

~ Henri Queuille

The Political Landscape

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Congressional approval has fallen to its lowest point in history

Do you approve or disapprove of the way Congress is handling its job?

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10

20

30

40

50

60

70

80

9082%

Approve Disapprove

National Gallup survey (March 27, 2012)

12%

House Elections

U.S. HOUSE: 2012 ELECTION CYCLE

DEM GOP OUTLOOK

Partisan Breakdown

190(+3 Vacancies) 242 +24 Margin

Seats up in 2012 435 218 is magic #

TOSS UP 10 14 TOSS UPLEAN D 8 3 LEAN RLEAN R 4 15 LEAN D

LIKELY D 13 25 LIKELY RSOLID D 153 181 SOLID R

Source: Cook Political Report, March 8, 2012

U.S. SENATE: 2012 ELECTION CYCLE

Source: Cook Political Report, March 1, 2012

DEM GOP OUTLOOK

Partisan Breakdown 51 + 2 Is 47

Seats up in 2012 3323 10

TOSS UP 7 3 TOSS UP

LEAN D 3 0 LEAN R

LEAN R 1 0 LEAN D

LIKELY D 4 2 LIKELY R

SOLID D 8 5 SOLID R

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Democratic Races – Toss

Up Hawaii Open (Akaka)

McCaskill (MO)

Nebraska Open (Nelson)

New Mexico Open (Bingaman)

Tester (MT)

North Dakota Open (Conrad)

Virginia Open (Webb)

Wisconsin Open (Kohl)

U.S. Senate: 2012 Election Cycle

GOP Races – Toss Up Brown (MA)

Heller (NV)

Maine Open (Snowe)

Presidential Election

12 KEY PRESIDENTIAL BATTLEGROUND STATES

USA Today May 5, 2012

12 KEY PRESIDENTIAL BATTLEGROUND STATES

USA Today May 5, 2012

In the first USA Today/Gallup swing-state poll conducted since Mitt

Romney became the presumptive Republican nominee, Romney and

President Barack Obama are nearly tied -- 45% vs.

47%, respectively -- among registered voters in the 12 battleground

states that make up the poll.

Republican Candidates Delegate Tally

Politico: May 16, 2012

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Presidential Campaign

President Obama

Base remains strong BUT

Major anxiety with job

market and economy,

especially GAS prices

Independents are key,

especially women

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Presidential Benchmark: What Direction Is the Nation Headed?

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Economic Concerns Continue to Be Cited as Most Important Problem

Gallup: Jan. 2012

What is the most important problem facing our country today?

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Standing President

No Primary

Fundraising Capability

The Obama Advantage

Presidential Approval Rating Average: 48%

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Key Take Away Points

The focus by the American public on government spending is unprecedented

Voters are angrier now than 2006, 2008 or 2010. It will be another very turbulent election

A majority of Americans believe the country has been on the wrong track– with no end in sight

Simply based on his ability to fundraise, President Obama will be a formidable candidate no matter the state of the economy

Context for Federal Policy and Budget Debates

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Debt Ceiling: Hit $15 Trillion in November 2011Fed govt. borrows 40 cents of every dollar spent now

Today, national debt is now 69% of GDP vs. 2008 was 40%

CBO estimates rise to 109% by 2023 if no change – the record

set in WWII

Federal Budget Picture

FEDERAL BUDGET TRENDS FY2000-2012

Outlays FY2000 FY2005 FY2010 FY2012Estimate

FY00-12 Change

Appropriations

Defense / Security $278B $443B $815B $881B + $603B

Non-Security $339B $487B $491B $462B + $123B

Mandatory

Medicare $199B $290B $446B $468B + $269B

Medicaid $117B $194B $273B $269B + $152B

Other Mandatory $123B $337B $644B $598B +$ 475B

Debt Interest $220B $178B $196B $240B + $20B

TOTAL OUTLAYS $1.790T $2.479T $3.456T $3.729T +$ 1.939T

ABSENT REFORMS, DEBT IS SET TO SKYROCKET IN THE COMING DECADES

Sources: Congressional Budget Office (January 2012) and Bipartisan Policy Center

Budget Control Act of 2011 (S. 365)August 1

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Debt Deal: Overview of Major Components

Debt Ceiling Increase With Required Reductions in Deficit$2.1 to $2.4 trillion

Discretionary Spending Caps$900 billion in spending reductions over 10 years

Joint Select Committee on Deficit Reduction (Super Committee)

Goal: Find $1.5 trillion in additional deficit reductionOr else…automatic sequestration

UNDERSTANDING THE BREAKDOWN OF SEQUESTRATION LEVELS

Total “triggered” cut$1.2 trillion

Distribute remaining$984 billion

evenly among fiscal years

2013 to 2021

Evenly split each year’s cut

between defense and non-defense

accounts

Subtract 18 percent in debt service savings

$109.3 billion per year

Defense$54.7 billion

Non-defense$54.7 billion

SEQUESTRATION LEVELS

FY13 FEDERAL

APPROPRIATIONS

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FY2013 Federal Budget & Appropriations

Senate FY13 discretionary spending level: $1.043 trillion

House FY13 discretionary spending level: $1.028 trillion

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EDA: Budget Background

President’s FY2013 request: $219M

$38M below FY12 enacted level ($257.5M) = 15% cut

$64.43M below FY11 enacted level ($283.43M) = 23% cut

$74M below FY10 enacted level ($293M) = 25% cut

EDA’s final FY12 funding total of $457.5M included $200M for

disaster assistance and $257.5M for programs and operations

Since FY2001, funding for EDA’s core economic development

assistance programs has decreased by approximately 50 percent!

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Economic Development Administration

Budget figures are in millions. Final FY2012FY2013

President’s Request

FY2013 Senate FY2013 House

Economic Development Administration

457.50 *

219.71

237.71

219.00

Planning Grants 29.00 27.00 29.00 27.00Public Works 111.64 65.50 62.20 85.50

Economic Adjustment Grants 50.06 65.20 56.50 40.20Technical Assistance 12.00 12.00 12.00 12.00

Research & Evaluation 1.50 1.50 1.50 1.50Trade Adjustment & Assistance 15.80 15.80 15.80 15.80

Regional Innovation Program 0.00 25.00 25.00 0.00Disaster Assistance 200.00 * 0.00 0.00 0.00

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Economic Development Administration

¨ Michaud Amendment: to restore a $38 million cut to EDA with a $38 million funding offset from the Census Bureau’s periodic census account

The Michaud amendment was defeated by a 190-218 vote

¨ Pompeo Amendment: to eliminate EDA The Pompeo amendment was defeated by a bipartisan vote of 129-279

¨ Scalise Amendment: to reduce the salaries and expense line items for three U.S. Department of Commerce accounts, including EDA’s operations account by $7.5 million

The Scalise amendment was defeated by a vote of 174-233

Amendments to H.R. 5326House FY13 Commerce-Justice-Science Appropriations Bill

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HUD CDBG Program

Agency Program FY10 FY11 FY12FY12

President’s Plan

HUDCommunity

Development Block Grants (CDBG),

Entitlement Program$3.99 B $3.34 B $2.94 B $2.94 B

FY13 Senate Draft T-HUD Appropriations Bill= $3.1 B

FY13 House Draft T-HUD Appropriations Bill =$3.34 B

SAFETEA-LU

TRANSPORTATIONREAUTHORIZATION BILL

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NADO Priorities for Transportation Reauthorization:

Strengthen role of rural local officials in the statewide transportation planning and investment process by establishing and giving federal recognition to RTPOs for areas outside the boundaries of MPOs

MPO Threshold IssueMore than 200 of the nation's 382 MPO's would

lose their MPO designation if threshold was changed

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Transportation: Senate

Senate’ s Moving Ahead for Progress in the 21st Century (S. 1813)▪ Passed floor on March 14 as two-year, $109 billion bill (FY2012-2013)▪ Maintains existing funding levels, adjusted for inflation

RTPO Language: ▪ Establishes rural local official consultation process “separate and

discrete” from the general public

MPO Issues:▪ Sets threshold for new MPOs at 200,000 ▪ Existing MPOs 50,000 - 200,000 - new multi-step process to maintain

MPO status

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Transportation: House House reauthorization bill:

American Energy and Infrastructure Jobs Act of 2012 (H.R. 7)

Five-year, $262.9 billion bill

House passed 90-day extension and authorized the Keystone XL pipeline on May 18

RTPO Language: Includes NADO-championed language

State DOTs may establish RTPOs for areas outside of MPOs

Elevates local official role from “consultation” to “cooperation” for long-range transportation plan, STIP, and project selection

If state does not recognize RTPOs, the state shall continue to “consult” with locals

MPO Issue:

Sets threshold for new MPOs at 100,000

Existing MPOs 50,000- 200,000 are grandfathered

PROBLEM: When MPO and state disagree on project of state-wide significance, Governor can override MPO

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Transportation: Key Players

47 House and Senate Conferees have been named

14 Senate Conferees 8 Democrats, 6 Republicans ½ of Senate conferees negotiated 2005 SAFETEA-LU

33 House Conferees 20 Republicans, 13 Democrats 8 of the 20 Republicans are Freshmen (7 from the T&I Committee) 14 of the 33 House conferees negotiated 2005 SAFETEA-LU

2012 NADO Annual Training ConferenceOctober 13 – 16 | The Mirage | Las Vegas, NV

National Association of Development Organizations (NADO)

and the NADO Research Foundation

400 North Capitol Street, NW | Suite 390 | Washington, DC 20001

NADO.org | Ruraltransportation.org | Knowyourregion.org

Regionalcouncilguide.org

202.624.7806 | Info@nado.org

Regional Strategies. Solutions. Partnerships.