Legislative Affairs

  • 1.  Education Funding Outlook for FY18 & FY19

    Posted 02-14-2018 15:57
    Last week, Congress passed a stopgap funding bill that included a two-year budget agreement for the 2018 and 2019 federal fiscal years (FY18 and FY19) and some additional funding for disaster aid relief, extending the Children's Health Insurance Program, and other purposes.

    That bill temporarily extends federal funding through March 22, and outlined top-line spending limits that officials must work with as they draft spending bills for this and the next fiscal year. Congress has approximately five weeks to draft/pass a spending package (omnibus) for funding all federal programs through September 30, 2018. Fortunately, raising the federal spending caps has increased the odds for getting more education funding.

    Meanwhile, President Trump unveiled his FY19 budget request on Monday outlining the administration's suggested funding priorities for the next fiscal year (October 1, 2018 through September 30, 2019). The original document suggested cutting Department of Education (ED) funding by $7.1 billion (10.5%) from the FY17 level, but the White House issued an addendum to restore some funding for select programs in light of last week's budget cap agreement. Even with a higher spending limit at its disposal, the administration has suggested cutting ED by $3.6 billion (5.4%) from its FY17 funding level. This would involve eliminating nearly 30 programs.

    Learn more about Congress' budget agreement, Trump's FY19 budget, and the implications for education funding and school budgeting by reading this blog.

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    ASBO USA
    asbousa@asbointl.org
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  • 2.  RE: Education Funding Outlook for FY18 & FY19

    Posted 03-23-2018 12:54
    Good afternoon,

    Earlier this morning, Congress passed a FY2018 omnibus bill to fund the federal government for the remainder of the fiscal year (FY). The spending package is now awaiting the president's signature. Please note that FY2018 federal spending will affect school district funding for the 2018-2019 school year. Learn more about the FY2018 omnibus bill and what it means for education funding in ASBOUSA's latest blog.

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    ASBO USA
    asbousa@asbointl.org
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  • 3.  RE: Education Funding Outlook for FY18 & FY19

    Posted 04-10-2018 08:42
    Edited by ASBO USA 04-10-2018 09:03

    Although FY2018 federal spending was approved by the recent omnibus bill, fiscal conservatives in Congress and the White House are considering two options to either 1) reverse this spending, or 2) limit future spending to reign in our national debt.

    (FY2018 spending affects the federal dollars school districts will receive for the 2018-2019 school year, so changes in spending could affect how much districts receive.)

    1) The House is working with the White House on a rescission package to revoke previously-approved spending. 
    The Committee for Education Funding (CEF) reports this package could propose cancelling any program spending approved from the recent FY 2018 omnibus or other legislation, including for disaster relief. Congress would have to vote to approve the entire package within 45 days or else spending will move forward as signed into law. A proposal is expected to be released by next month, and would likely include rescinding up to $50 billion from non-defense programs. Such a proposal has a decent chance of passing the House but would face stronger opposition in the Senate, however it would only need 51 votes to pass.

    2) This week, the House is scheduled to vote on a constitutional amendment to require Congress to operate on a balanced federal budget, or a "Balanced Budget Amendment" (BBA).
    CEF says this amendment would take effect five years after the BBA is ratified. It would require the President to propose a budget where outlays do not exceed revenues each year, and also prohibits outlays for a year that exceed that year's revenues unless 60% of the House and Senate approve the extra funding. The requirement could be waived if the country is at war, but not because of a recession or increased expenses due to unemployment insurance, Medicaid, SNAP, or other factors. CEF and ASBO International, along with 270+ other organizations opposed a BBA when the idea came up in 2016, and continue to oppose it because it would result in significant cuts to education and other discretionary programs. Chances of this amendment passing are fairly slim, but the idea could gain ground as federal spending continues to grow.

    For some extra context, officials' concerns about the rising debt are growing, especially in light of a CBO report released yesterday. CBO said that our national debt has doubled in the last decade as a percentage of our nation's GDP and will approach 100% of our GDP by 2028 -- far greater than the debt the U.S. had after WWII. Please note that we will continue to monitor these items and relay any implications for education funding should Congress act on these proposals, so please stay tuned for further updates.



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    ASBO USA
    asbousa@asbointl.org
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  • 4.  RE: Education Funding Outlook for FY18 & FY19

    Posted 04-16-2018 09:36
    Edited by ASBO USA 04-16-2018 09:37
    On Friday, the House voted on a Balanced Budget Amendment (BBA) to amend the U.S. Constitution so that the federal government would be required to operate on a balanced budget. As anticipated, the amendment failed to pass the chamber since it needed a two-thirds majority vote with bipartisan support, but received a 233-184 vote on mostly party lines. 

    However, several fiscal conservatives are not giving up on reducing the federal deficit, and are still trying to work out a rescission package that could claw back federal spending. Some are considering revoking anywhere from $20 to $60 billion in spending from the recent FY18 omnibus package (which approved an extra $3.9 billion for Department of Education programs; it's likely ED programs would take a hit in the event a rescission package passes). Meanwhile, others are looking at other accounts of unused money as they work with the Trump Administration to develop a rescission proposal. The plan is still a work in progress, but has some support in the House. The proposal would be harder to move in the Senate, but we will continue to keep members informed of the latest updates here as more information becomes available.

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    ASBO USA
    asbousa@asbointl.org
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  • 5.  RE: Education Funding Outlook for FY18 & FY19

    Posted 04-19-2018 14:11

    ASBO International is continuing to monitor the status of federal spending for FY2018 (which affects 2018-2019 school funding), especially in light of a spending rescission package the Trump Administration is planning, which could revoke up to $60 billion from the recent omnibus bill. The Committee for Education Funding (CEF) shared with us how a rescission would work:

    If the Trump Administration proposes a rescission package, Congress has 45 days to vote yes or no on the entire package. Despite significant bipartisan opposition, the Administration hopes to release its proposal "as soon as next month."

    • If the package doesn't pass Congress, the Administration can't re-propose to rescind those items again.
    • Once something has been proposed to be rescinded, funding for that purpose/program will be frozen and "cannot be obligated until after Congress has acted or the 45-day window expires."
      • If the Administration proposes to rescind FY 2018 funding that was about to be released for programs or grantees, the delay could have consequences for program operations. However Congress can avoid this by quickly voting down the rescission package. Once funding is obligated, it cannot be rescinded.
    It's likely that ESSA Title II and IV grants would be the most vulnerable for a rescission package, as the Administration proposed cutting these programs in the FY18 and FY19 President's Budgets. Title II and IV dollars may be used for teacher training/professional development; after-school programs; investing in curricula, school climate/safety, and education technology, etc. Please stay tuned for further information.




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    ASBO USA
    asbousa@asbointl.org
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  • 6.  RE: Education Funding Outlook for FY18 & FY19

    Posted 04-30-2018 12:12
    As we continue to monitor the status of FY2018 federal funding in light of an upcoming White House rescission proposal to rollback some of the federal spending agreed upon in the recent omnibus, please note:

    • POLITICO reports that the Trump administration appears to be downsizing its plan to claw back FY2018 federal spending, which originally was expected to revoke as much as $60 billion.
      • Rep. Tom Cole (R-OK) said that the rescissions package "wouldn't exceed $25 billion, and could possibly be less." The proposal is expected to be submitted to Congress after lawmakers return May 7 from a short recess.
        • Even with $25 billion in cutbacks, the rescissions package would be unprecedented for recent administrations.The Clinton administration was the last to propose rescissions ($128 million), and the Reagan administration requested the most in history ($43 billion in cutbacks over eight years). 

    Regardless of whether the proposal passes, any program proposed for rescission will have its funds frozen for up to 45 days until Congress votes on it. 
    • If a grant that your state, district, or school relies on is included in the package, funding may be delayed or revoked depending on the outcome, which will likely disrupt state and school budgeting processes.  


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    ASBO USA
    asbousa@asbointl.org
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  • 7.  RE: Education Funding Outlook for FY18 & FY19

    Posted 05-08-2018 15:37
    Edited by ASBO USA 05-08-2018 15:38
      |   view attached

    The Committee for Education Funding (CEF) reports the White House submitted its rescission package to Congress this morning (see attached). The proposal:

    • Requests rescinding $15.4 billion from 38 programs that have unobligated funding from previous fiscal years.
      • There is no FY2018 funding from the omnibus included in this this package. Another separate rescission proposal for the omnibus is still on its way.

    • Does not request rescissions for Department of Education (ED) programs, but asks to rescind funding for other L-HHS programs that affect education, including the Children's Health Insurance Program (CHIP).
      • Would rescind $5.1 billion for the Children's Health Insurance Fund and $1.9 billion for the Child Enrollment Contingency Fund.
    Note: Congress often uses extra CHIP funding as a "change in mandatory program" (CHIMP) spending for the L-HHS-ED appropriations bill to effectively shift mandatory program funding to offset extra discretionary spending for other L-HHS-ED programs. If this CHIP funding is rescinded, CEF argues that appropriators would have a smaller "safety-net" to pull from for funding ongoing L-HHS-ED programs and could have a dramatic impact on them. The rescission would effectively lower the level of spending available for non-defense discretionary (NDD) programs (including education) just after Congress voted to increase FY2019 budget caps this spring; caps that were set while presuming the CHIMP "safety-net" funds would be available.


    CEF says the rescission package could pass the House but will face more opposition in the Senate. Since the rescission proposal undercuts Congress' bipartisan support for the level of FY 2019 NDD spending that lawmakers agreed on this year and it would cut education-related services, CEF encourages others to oppose the proposal. Please stay tuned for more information about this and other rescission packages and their effects on education programs.


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    ASBO USA
    asbousa@asbointl.org
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  • 8.  RE: Education Funding Outlook for FY18 & FY19

    Posted 05-11-2018 11:26

    Yesterday, POLITICO reported that the White House funding rescissions package (which proposes clawing back $7 billion for the Children's Health Insurance Program [CHIP]), is now moving forward with Congress:

    The House introduced H.R. 3, the "Spending Cuts to Expired and Unnecessary Programs Act," a near replica of the proposal and could vote on it as soon as next week. The Senate is waiting to take action due to legal concerns about whether CHIP funding (a mandatory spending program) can even be rescinded and whether the rescissions bill can be filibustered. Legal opinion is expected May 22, and Congress is trying to get a final vote on the package before the Memorial recess.

    While this package deals with unobligated and expired program funding, these extra dollars serve as as "rainy day" funds to offset future increased spending for other domestic programs, including education. Rescinding these funds will make it harder to move dollars around in the event more federal investment is needed for a domestic program, say during a crisis or emergency. As for the second rescissions package that is expected to claw back FY18 omnibus funding (and potentially have an even larger effect on schools), we're still waiting on more information, so please stay tuned.


    Regarding fiscal year 2019 (FY19) education funding, which affects school district dollars for 2019-2020: 

    The Committee for Education Funding (CEF) says it is likely that FY19 funding for the Departments of Labor, Health and Human Services, and Education (L-HHS-ED) will be LESS than in FY18. (FY18 reflects 2018-2019 school district dollars.) Click here for current estimates of ED funding to states by program for FYs 2017-2019.

    Congress is currently prioritizing FY19 funding for homeland security, military, and construction programs over labor, health, education, and others. Please consider contacting your elected officials about prioritizing FY2019 funding for education as appropriators finalize spending bills over the coming weeks.



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    ASBO USA
    asbousa@asbointl.org
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