Fasten Your Seatbelts, We’re in for a Bumpy Ride. NASBO Spring Meeting April 26 , 2013 Santa Ana Pueblo, NM. Federal Funds Information for States. Where Are We Now?. Let’s Start at the Very Beginning. Focus on FY 2014. Divergent FY 2014 Budget Proposals. Health.
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Fasten Your Seatbelts, We’re in for a Bumpy Ride
NASBO Spring Meeting
April 26, 2013
Santa Ana Pueblo, NM
Federal Funds Information for States
President: Medicare Part D rebates; Medicare provider cuts; means-testing Medicare premiums; Medicare cost sharing; federal employee health programs
House: Repeal coverage provisions of ACA; convert Medicaid and CHIP to block grants; Medicare Part D tort and means-testing; Medicare premium support proposal would kick in later
Senate: Nonspecific cuts focused on providers rather than beneficiaries, and focused on Medicare
President: Reduce tax fraud; reduce farm subsidies; increase federal employee retirement contributions; reduce fraud and abuse; reform PBGC
House: Increase retirement contributions; reduce farm subsidies; block grant SNAP; reform PBGC; wind down Fannie Mae and Freddie Mac; reform energy subsidies and reduce land purchases
Senate: Reform agriculture programs and PBGC
President: Reduce discretionary beyond BCA levels beginning in FY 2017
House: Reduce transportation and other discretionary spending
Senate: No specific recommendations
President: Adopt chained CPI for most parts of federal budget and tax code, excluding means-tested programs. Savings are split -$130b on spending side, -$100b on revenue side
House: No provision but possibly amenable to president’s proposal
Senate: No provision
President: Limit value of certain exclusions and deductions (including tax-exempt bonds) to 28% tax bracket; “Buffett Rule”; cigarette tax
House: Deficit-neutral tax reform (limiting tax expenditures to allow lower rates)
Senate: No specifics beyond limiting tax expenditures and targeting “the wealthiest Americans and big corporations”
President: Repeal sequester but implement cuts to discretionary spending beyond those mandated by BCA caps, beginning in FY 2017
House: Retain sequester but reallocate cuts from defense to nondefense
Senate: Repeal sequester but implement cuts to discretionary spending beyond those mandated by BCA, beginning in FY 2015
President: Assume a reduction from FY 2013 levels, while CBO baseline assumes continuation at inflation-adjusted levels
House: Same as president, with more modest drawdown assumptions
Senate: Same as president, with more ambitious drawdown assumptions
President: “Fix it First”; competitive transportation program; infrastructurebank; America Fast Forward Bonds; expand TIFIA; high-speed rail; payroll tax credit for employers; Department of Energy Race to the Top
House: No provisions
Senate: Infrastructure repair; fix dams; dredge ports; infrastructure bank and technology in schools
Will the House and Senate adopt a concurrent budget resolution?
Will each chamber proceed based on its individual budget resolution?
How will the gap be bridged?
Will we end up back in Sequesterland?
The “action-forcing” event: debt ceiling
Will be reached soon, with enough wiggle room to get through July.