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.
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.