AUCD Analysis of the President's FY 2013 Budget Proposal

February 20, 2012

President's FY 2013 Budget Request

Summary of Proposed Funding for Departments of Labor, HHS, and Education

On February 13, President Obama transmitted his $3.8 trillion Fiscal Year (FY) 2013 budget request to Congress. The budget has many of the same proposals as last year's budget in relation AUCD network and other disability programs. Many disability programs have been level-funded, some received small increases, and some have been cut or consolidated. The request avoids cuts to entitlements and would allow the high-income Bush tax cuts to expire.

In addition to discretionary funding changes, the President is proposing $51 billion in Medicaid cuts over the next ten years. The cuts appear similar to previously proposed Medicaid reductions including reducing the Medicaid provider tax threshold, proposing a single blended matching rate for Medicaid and the Children's Health Insurance program, reducing reimbursement rates for durable medical equipment and changes to the funding for hospitals that serve a large number of low income individuals. However, the HHS budget statement reiterated the Administration's opposition to block granting and slashing the funding for Medicaid.

Below is a summary and table comparing the funding levels of the President's FY 2013 proposed budget to last year's (FY 2012) and FY 2011 levels for programs within the Departments of Labor, Health and Human Services, and Education that AUCD monitors most closely. All budget documents can be found on OMB's website.

HHS Administration on Children and Families and AUCD Network Programs

For Developmental Disabilities programs, the core DD Act programs (UCEDD, DD Councils, and Protection & Advocacy) are level-funded. University Centers for Excellence in Developmental Disabilities (UCEDD) would receive $39 million, the same as FY 2012. DD councils are funded at $75 million; and Protection & Advocacy at $41 million. The Projects of National Significance (PNS) is funded at $8 million. This program was cut from $14 million in the final FY 2012 appropriations bill. It is still unclear what projects will be cut due to the FY 2012 cut.

For the Leadership Education in Neurodevelopmental and Related Disabilities (LEND) programs, the FY 2013 Budget provides $47 million for the HRSA "autism and developmental disabilities" line item authorized by the Combating Autism Act (CAA). This is the same amount appropriated in FY 2012. Last year, the President had requested an increase of $7 million for this line item, $2.6 million of which was specifically dedicated to the LEND program. The newly reauthorized law no longer contains yearly increases; it keeps funding at FY 2011 levels through FY 2015.

 

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FY 2013 President's Budget for Depts. Of Labor, HHS, and ED (in millions)

 

	FY 2011	FY 2012	President's FY 2013	Difference over FY 12
DEP. OF HEALTH AND HUMAN SERVICES
Administration for Children and Families
University Centers for Excellence in DD	39.0	39.0	39.0	0.0
DD Councils	75.0	75.0	75.0	0.0
Protection & Advocacy Systems	41.0	41.0	41.0	0.0
Projects of National Significance	14.0	8.0	8.0	0.0
Child Abuse Prevention and Treatment	94.0	94.0	94.0	0.0
Health Resources and Services Administration
Maternal & Child Health Block Grant	656.0	639.0	640.0	+1.0
Combating Autism Act - Autism and Other DD	48.0	48.0	48.0	0.0
Home Visiting program	250.0	350.0	400.0	+50.0
Family to Family Health Info Centers	5.0	5.0	0.0	-5.0
Centers for Disease Control and Prevention	6,305.0	6,135.0	5,835.0	-301.0
Center on Birth Defects & DD, Disability and Health	136.0	137.0	126.0	-12.0
National Institutes of Health	30,943.2	30,698.0	30,623.0
Natl. Institute of Child Health and Hum. Dev.	1,328.4	1,323.0	1,320.0	+0,775.0
Administration on Aging
Lifespan Respite Care Act	2.0	2.0	2.0	0.0
Nat'l Family Caregiver Support Program	154.0	154.0	154.0	0.0
Department of Education
Individuals with Disabilities Education Act
Part B State and Local Grants	11,466.0	11,577.9	11,577.9	0.0
Preschool Grants	373.4	372.6	372.6	0.0
Part C Early Intervention	438.5	442.7	462.7	+20.0
Part D National Programs
State Personnel Development	48.8	43.9	45.0	+1.1
Technical Assistance and Dissemination	48.8	46.6	46.8	+0.2
Personnel Preparation	88.5	88.3	85.8	-2.5
Parent Information Centers	28.0	28.9	28.9	0.0
Technology and Media	28.6	29.6	29.6	0.0
Special Olympics education program	8.0	8.0	8.0	0.0
PROMISE: Promoting Readiness of Minors	--	2.0	30.0	+28.0
Research in Special Education (IES)	51.0	49.9	49.9	0.0
Special Education studies and evaluations (IES)	11.4	11.4	11.4	0.0
DOL Office of Disability Employment Policy	39.0	39.0	39.0	0.0
Rehabilitation Services and Disability Research
Voc. Rehabilitation State Grant	3,084.7	3,121.7	3,167.4	+45.7
*Supported Employment State Grant	29.1	29.1	0.0
NIDRR	109.0	108.8	106.8	+2.0
State Assistive Technology Programs	31.0	32.8	30.8	-2.0
Independent Living Formula Grants	137.6	137.3	137.3	0.0
Higher Education Act
**Postsecondary Program for Students with ID	11.0	11.0	0.0
CNCS AmeriCorp State and National	372.5	345.0	345.0	0.0
Disability Placement Funds	5.0	0.0	3.0	+3.0

* the supported employment program would be consolidated under Title I of the VR program

**the President's funding proposal would consolidate the program into the existing Funds for Improvement in Postsecondary Education (FIPSE) program. 

 

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National Institutes of Health (NIH)

The National Institutes of Health is level-funded at $30.623 billion. The National Institute on Child Health and Human Development (NICHD), which funds the research centers (IDDRCs) would receive $1.32 billion under the President's request, an increase of $0.775 million over the FY 2012 enacted level. The full Congressional Justification for NICHD and additional NIH budget documents are on the NIH website.

Centers for Disease Control and Prevention (CDC)

Of all the agencies within the Departments of Health and Human Services, CDC took the biggest hit in the President's proposal. CDC's total budget authority was cut by $665 million, which is 12% below the FY 2012 enacted level and $1.4 billion, or 22%, below the FY 2010 level. Also troubling is that much of the funding being made available for CDC is being tapped from the Prevention and Public Health Fund (PPHF) authorized in the Affordable Care Act that was intended to provide new funding for transformational investments in promoting wellness, preventing disease, and other public health priorities. According to the budget documents released on Feb. 13, $903 million of the $1.25 billion available from the Fund for FY13 will be used to supplant, not supplement CDC's budget.

The Birth Defects and Developmental Disabilities programs would be almost entirely ($107 million) supported by the Prevention and Public Health Fund. Given that change, if the Affordable Care Act or the PPHF were ever to be eliminated, as has been proposed by the House of Representatives, it would put CDC's disability and other programs at an incredible risk.

The Budget summary also states that within the CDC it "eliminates activities with a limited public health impact and consolidates disease specific funding into three new competitive programs that are more comprehensive in their approaches to focus efforts on priority areas to maximize public health impact. In addition, in FY 2013, the Budget includes $21 million to support autism spectrum disorders research and surveillance."

Department of HHS/Child Abuse and Neglect

The President's budget freezes funding for the Child Abuse Prevention and Treatment Act programs at $94 million overall. Each program is level-funded, with both the child abuse state grants and child abuse discretionary activities receiving $26 million and community-based child abuse prevention receiving $42 million.

More details can be found in the HHS budget summary on the White House website.

Department of Education

Special Education

The Budget provides level-funding ($11.6 billion) for IDEA Part B grants to states. The budget summary states that the request would maintain the Federal contribution toward meeting the excess cost of special education at about 16 percent of the national average per pupil expenditure and provide a per-child average of $1,762 for an estimated 6,558,000 children with disabilities.

The Budget request also provides additional dollars ($20 million) for Part C Grants for Infants and Toddlers for a total of $462 million. The Budget states that these funds would increase the average State allocation by almost $325,000 to help States serve an estimated 370,000 infants and toddlers, and encourage States to extend early intervention services to children through age 5. Additionally, this request would allow the Department to award Incentive Grants to states (since the request is above the $460 million "trigger" in the law) to facilitate a seamless system of services for children with disabilities from birth until entry into kindergarten. IDEA Preschool Grants (ages 3-5) are level funded at $372 million.

Most Part D special education national activities are level-funded with a few exceptions. The State Personnel Development program receives a $1 million increase to help cover the cost of "approximately 42 continuation awards to State educational agencies" for teacher training. The Personnel Preparation program is cut by $2.5 million.

Other special education programs include $8 million for the implementation of Special Olympics education, including Project UNIFY, a program to "develop teamwork skills and increase awareness and social acceptance of individuals with intellectual disabilities." Another program established in FY 2012 is the Promoting Readiness of Minors in SSI, or PROMISE. The President's budget proposes $30 million for this joint pilot demonstration program with the Social Security Administration, the Department of Health and Human Services, and the Department of Labor to improve health, education, and post-school outcomes of children who receive SSI and their families. This program would fund pilots in select States to improve the provision and coordination of services for these individuals.

Higher Education

As was proposed in the President's FY 2012 Budget, the $11 million for the Model Transition Programs for Students with Intellectual Disabilities (TPSID) grants would be consolidated into the Fund for Improvement of Postsecondary Education (FIPSE) program. The Congress did not choose to follow the President's recommendation to consolidate this program in the final funding bill for FY 2012. AUCD is concerned that the purposes of the program may get lost in a consolidated program and will advocate to keep the program separate.

Institute for Education Sciences (IES) special education studies and evaluations and special education research would both be level-funded in the President's Budget.

Vocational Rehabilitation and Independent Living

Similar to last year's budget request, this year's plan includes proposals that would consolidate Title I vocational rehabilitation programs. A total of $35.7 million would be made available for the state grant programs from the consolidation of 1) the Supported Employment State Grants program ($29.1 million); 2) the Migrant and Seasonal Farmworkers program ($1.3 million); and 3) the portion of Training program funds currently provided to VR agencies to support in-service training for personnel ($5.3 million). The request also includes $38.2 million for grants to Indian tribes. Finally, $10 million would be set aside to support an interagency Workforce Innovation Fund (WIF) administered jointly by the Departments of Education and Labor.

The Budget request includes $25.6 million for the Assistive Technology State grant program, $4.3 million for the Protection and Advocacy for AT, and $1 million for technical assistance. The request does not include funds for the one-time competitive grant that was included in the final FY 2012 budget for alternative financing which accounts for the $2 million decrease from the FY 2012 level.

More details can be found in the Department of Education Budget summary on the White House website.

Department of Labor

The President's Budget provides level-funding ($39 million) for the Office on Disability Employment Policy (ODEP).

In addition, the Budget invests $125 million in a competitive Workforce Innovation Fund in the Departments of Labor and Education "to engage States and localities in identifying better ways of delivering services, breaking down program silos, and paying providers for success." See more details in the Department of Labor Budget summary.

AmeriCorps State and National

The FY 2012 Budget requests $45 million for AmeriCorps State and National grants. This program supports the National Service Inclusion Project that promotes the inclusion of people with disabilities in national service programs. The Budget requests $3 million to fund grants targeted at increasing the awareness of and access to national service programs among people with disabilities. This represents an increase of $3 million over FY 2012 but is $2 million less than FY 2011. However, a focus on disabilities is also woven throughout other programs within the National and Community Service programs authorized by the Edward M. Kennedy Serve America Act. For more information, see the President's budget summary of CNCS programs.

Next Steps

The President's budget request is only the first step in an almost year-long process of completing annual appropriations for federal department programs. Because the Budget Control Act of 2011(BCA) established caps on discretionary spending for the next ten years, both the House and Senate Budget leaders announced that they would likely not try to develop Budget Resolutions this year. Instead, the Appropriations subcommittees are expected to receive their allocations based on those caps contained within the BCA. Therefore, the next step is for the Appropriations subcommittees to begin marking up their annual appropriations bills. Due to the upcoming elections and ongoing partisan politics, it appears unlikely that the House and Senate will be able to come to agreement on separate funding bills. In that case, the Congress will have to pass a continuing resolution to keep federal programs running until a "lame duck" session following the 2012 elections in November.

Watch for weekly updates and action alerts from AUCD for ways in which network members can assist in educating Members of Congress about the impacts of various fiscal policy proposals on individuals with disabilities and families.