This is an update on recent federal budget developments and the status of key federal funding streams for out-of-school youth.

FY 2011

Last Thursday April 14th, Congress passed the FY 2011 Continuing Resolution (CR) which covers the remainder of this current fiscal year through September 30^th, 2011.  This is the compromise bill that averted a government shutdown in the eleventh hour.  It contains $38 billion in cuts to domestic discretionary funding.  While this final bill contains cuts far less severe than were proposed in the House proposal, it does include significant reductions that will affect job training, education, and human services.   Some key funding streams below:

Workforce Investment Act (WIA)

• WIA Title I Youth funding is reduced by 10.4% from $924,069,000 to $827,569,000, a cut of $96.5 million. 
• WIA Title I Adult and Dislocated Worker funding streams are reduced by a similar percentage.
• A new competitive Workforce Innovation Fund is created, funded at $125 million.
• The local impact of the WIA Title I formula cuts will be offset by reducing the state set-aside to 5% (from 15%) of the formula funds, sending a higher percentage to the localities. 
• WIA Title II Adult Education is cut by $31 million. It is unclear how this cut will be applied.

YouthBuild is reduced by 22% from $102.5 million to $80 million, a cut of $22.5 million, not counting the expansion supported by stimulus funds.  This will affect the results of the recent DOL grant competition, shrinking the number of programs to be funded. 

Job Corps is level funded at $1.7 billion. 

Reintegration of Ex-Offenders is reduced by 21% from $108.5 million to $85.6 million, a cut of $22.9 million.

Green Jobs Innovation Fund is zeroed out, a reduction of $40 million in FY11. This does affect FY10 funding for the recent Green Jobs competition.

Career Pathways Innovation Fund is zeroed out from $125 million.  The recent competition for new grants has been rescinded, and FY10 Career Pathways funds were eliminated in one of the earlier CR’s.

Community Services Block Grant is reduced by 2.9% from $700 million to $680 million, a cut of $20 million.

Community Development Block Grant is cut by 16%, a reduction of $650 million.

The FY11 budget bill also includes reductions to Career and Technical Education, TRIO, GEAR UP, and many other related programs. 

 In addition to spending cuts listed here, the bill includes a 0.2 percent across-the-board reduction for all non-defense funding, on top of the amounts above.   For more info:  http://www.nationalskillscoalition.org/federal-policies/federal-funding/federal-funding-documents/nsc_fy2011_dol-ed_fundingchart_2011-04.pdf

There are still many questions about how these cuts will play out at the local level.  We will share information as we learn more. 

FY 2012

With the current year’s budget now settled, Congress is moving on to bigger budget battles for FY 2012 and beyond.  On Friday, the House adopted the Republican-sponsored budget for FY 2012, put forward by Rep. Paul Ryan (R-WI), which includes dramatic cuts to programs that support social welfare and economic mobility, tax cuts for individuals and corporations, and a reframing of the role of government over the next 10 years.  While not expected to pass the Senate, it is a preview of one side of the larger budget debate to come.  Last week, President Obama also released a different 10-year vision for the budget and reducing the deficit, and the Progressive Caucus has proposed a “People’s Budget”.  You can find more information on each of these proposals below:

Republican/Ryan plan: http://budget.house.gov/UploadedFiles/PathToProsperityFY2012.pdf

President’s plan: http://www.whitehouse.gov/the-press-office/2011/04/13/fact-sheet-presidents-framework-shared-prosperity-and-shared-fiscal-resp

Progressive Caucus: http://cpc.grijalva.house.gov/index.cfm?sectionid=70&sectiontree=5,70

It is critical for all of us to stay informed and involved, as this national budget debate has enormous implications for our young people and communities.  Congress begins a 2-week recess this week and will continue budget negotiations the first week of May.  Please continue to weigh in with your Representatives and Senators on the importance of federal funding for education, training, and employment opportunities for young adults. 

For specific action steps, see alert from the National Youth Employment Coalition:

http://www.z2systems.com/np/clients/nyec/viewOnlineEmail.jsp?emailId=3c803753d125254baca91d5c4b00948c3m485633c8

The Center for Policy and Budget Priorities and National Skills Coalition are two additional useful sources for federal policy analysis:

http://www.cbpp.org/

http://www.nationalskillscoalition.org/