October 10, 2012

League of California Cities Federal Briefing

October 10, 2012

Federal SequestrationUnderstanding Impacts to Your City &

How to Take Action


Federal Sequestration: Impact on California Cities

1. Federal Sequestration Summary and Projected Impacts

2. Advocacy Efforts Underway on the Sequester

3. What You Can Do to Help


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League Legislative Advocates

Dorothy HolzemAssociate Legislative Representative

Dustin McDonaldLeague of California Cities Federal Advocate


FY 2013 Appropriations

• August 2011 – Congress approves the Budget Control Act Set automatic spending caps on federal programs

Created the Joint Select Committee on Deficit Reduction (Super Committee)

• Super Committee failure results in federal sequestration $1.2 trillion in across-the-board cuts to federal programs through

2021. 50% of cuts to come from non-defense discretionary programs. 50% of cuts to come from defense programs.

Federal Sequestration Background


• Sequestration would impose cuts to federal programs that benefit local governments in FY 2013:

Program Projected Cut Community Development Block Grant (CDBG)

8.4% HOME Investment Partnership

8.4% COPS

8.2% Byrne Justice Assistance Grants

8.2% Clean Water State Revolving Loan Fund (CWSRF)

8.4% Water Infrastructure Funding (Army Corps of Engineers)

8.2%

• Sequestration would reduce funding for these programs by an estimated 28% between FY 2013 and FY 2021.

Impacted Programs


Additional Impacts

$739 million in highway and road funding is vulnerable to federal sequestration

National Defense Programs – California stands to lose $2 billion in defense contract revenue

135,000 private-sector jobs and $11.7 billion in gross state product (GSP)


• Congress will renew debate on reorganizing the sequester in November.

• Six week legislative session to make revisions to the sequester will begin on November 12.

Status of Sequester


• Strong and ongoing advocacy effort underway on avoiding defense cuts.

• Nascent effort to protect local programs.

Advocacy on the Sequester


• Deficit reduction should not shift costs to local governments. 83.7 percent of the nation's population resides in metropolitan areas.

Metro areas have been responsible for nearly 88 percent of the recovery in the nation's real GNP and over 83 percent of employment growth to date.

• Non-defense discretionary (NDD) programs are successful and productive, leveraging significant funding from non-federal sources to help spur economic recovery.

• Achieving deficit reduction cannot be done solely through cuts to local government programs. NDD programs are account for less than 1/5 of the total federal budget.

90% of federal deficit reduction over the last two years has focused cutting NDD spending.

Even if discretionary spending were reduced by 100 percent, the federal government would still face a $500 billion annual deficit.

Key Points


What Can You Do? • This is a critical time for cities to weigh in with your

members of Congress and Senators.

• Urge California’s 53 members of Congress and 2 Senators to hold the line on funding for our priority programs to sustain national economic growth.

• We need the help of all of California’s cities to convey this message through:

Direct contact Letters Op-Eds


• Describe how funding from these programs has helped your city: Increase or retain jobs

Leverage private or state funding

Help small businesses

Support local economic expansion

Be specific

Focus on Program Benefits


• Describe how additional cuts to these programs would impact your city:

Local infrastructure projects delayed or eliminated

Local social service projects reduced or eliminated

Employee layoffs

Support to small businesses

Focus on Economic Impacts


• Refer your members of Congress to leading bipartisan studies on deficit reduction that contain recommendations.

• Reiterate the message that local programs have already been cut severely over the past two federal fiscal years and negative economic impacts have resulted.

Be Prepared for the Discussion


• Members of Congress are home in their districts campaigning through election day November 6. Talk to them.

Write them.

Pass resolutions and share them.

Publish Op-Eds.

Start Today!!!


Questions?


League Resources

• To access additional information on this material or the advocacy resources discussed on this webinar, visit www.cacities.org/sequestration or contact League staff at [email protected].

http://www.cacities.org/sequest

mailto:[email protected]

Documents

October 10, 2012