Famighetti, Christopher - Writing Sample

POLICY BRIEF
THE 2013 FEDERAL BUDGETS IMPACT ON COMMUNITIES OF COLOR AND LOW-INCOME FAMILIES
FEBRUARY 2012
On February 13th, 2012, the Obama administration released a budget proposal for fiscal year 2013 (FY 2013) that strengthens the national economy by investing in schools, communities and safety net programs. The FY 2013 budget also includes a number of important investments in infrastructure that will spur much needed job growth in a time of economic uncertainty for many working and low-income families. It is critical that such investments take into account the persistently high unemployment rates in communities of color, and target spending to increase the economic security of the communities most impacted by the Great Recession. Additionally, the budget includes important changes to the tax code that will lay the foundation for a fairer and more equitable economy. This policy brief highlights the impact of the presidents FY 2013 budget proposal on women of color, their families and communities. Increases in spending to programs that disproportionately serve low-income individuals and families will have a positive ripple effect, making it easier for families and communities to build economic security over the long-term. Inversely, cuts to safety net programs and social programs will have the opposite effect. Long-Term Impact on Discretionary Spending Last year President Obama signed the Budget Control Act (BCA) of 2011, which set discretionary spending caps that require $900 billion in cumulative cuts over the next decade. As a result, the FY 2013 budget proposal features significant cuts to non-security discretionary program funding1 (not including mandatory programs such as Social Security, Medicaid and Medicare) that amount to a decrease from 3.1 percent of GDP in 2011 to 1.7 percent of GDP in 2022.2 These budget reductions would likely impact the long-term economic security of low-income communities and families. Additionally the FY 2013 budget would decrease defense-related spending, proposing $487 billion in cuts to military spending over the next ten years.3

The Presidents budget proposal is a vast improvement over the outcome in FY 2012, when calls for austerity led to cuts in government services that bolster the economic security of low-income families and individuals.

INCLUSION.

112th Congress of the United States.Budget Control Act of 2011 (S.635). 30. Fiscal Year 2013 Budget of the U.S. Government. Office of Management and Budget. Summary Table S-6. 211. 3 Fiscal Year 2013 Budget of the U.S. 77.
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WOMEN OF COLOR POLICY NETWORK, NYU WAGNER 295 Lafayette Street, 3rd Floor, New York, NY 10012 212.998.7511 wagner.nyu.edu/wocpn

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Families and Children The presidents FY 2013 budget proposal includes level funding as well as increases for several programs critical to protecting the economic security of women of color and their families, including nutritional assistance programs, programs supporting early childhood development, and childcare subsidies. The following allocations will help to promote the health and economic security of families and children. Funding to keep pace with participation in the Woman, Infants and Children (WIC) program, projected to increase to 9.1 million individuals. WIC provides prenatal and postpartum care to low-income, nutritionally at risk mothers and children.4 The budget increases funding to the Supplemental Nutrition Assistance Program (SNAP) benefits by $1.4 billion5 and retains enhanced benefits included in the American Recovery and Reinvestment Act (ARRA). The budget also proposes suspending participation time limits for specific working-age, lowincome adults.6 An small increase of $85 million in funding for Head Start Early and Early Head Start Programs. An increase of approximately $825 million to the Child Care and Development Block Grant, which funds child care subsidies for low-income working families.7 This includes $300 million in funding to states to spur improvements in child care quality.8 Makes improvements to the Earned Income Tax Credit (EITC) included in ARRA, increasing the after tax income of millions of low-income families. The budget also expands the Child Tax Credit, easing the tax burden on single-mothers and families.9 Continued implementation of the Healthy and Hunger Free Kids Act, which improves child nutrition programs and increases access to healthy meals.10 $5 million dollars in funding for technical assistance to states setting up paid leave programs.11 While the above investments will benefit the economic security of millions of Americans, the budget also instates cuts that will detract from the health and well-being of many low-income families. $452 million in cuts to the Low Income Housing Energy Assistance Program (LI-HEAP), which provides heating assistance to low-income individuals and families.12 Restores only $1 million in funding to the Maternal and Early Childhood Health Block Grant, which was cut by $16 million in FY 2012.13 Additionally, the presidents budget proposal does not include reauthorization of the Temporary Assistance for Needy Families (TANF) block grant, a critical component of the safety net that supports the economic security of millions of single mothers. While the budget does include shifting $319 million from the TANF Contingency Fund to the TANF Supplemental Grants program, it does not outline a long-term strategy for strengthening and reauthorizing TANF.14

Fiscal Year 2013 Budget of the U.S. Government. Office of Management and Budget. 67. FY 2013 Budget Summary and Annual Performance Plan. U.S. Department of Agriculture. 56. 6 Department of Agriculture Budget Appendix, Fiscal Year 2013 Budget of the U.S. Government. Office of Management and Budget. 177. 7 Department of Health and Human Services Budget Appendix, Fiscal Year 2013 Budget of the U.S. Government. Office of Management and Budget. 510-520. 8 Matthews, Hannah. Presidents Budget Includes Promising News for Early Childhood. Center for Law and Social Policy (CLASP). Retrieved on February 13 2012 from http://www.clasp.org/issues/in_focus_print?type=child_care_and_early_education&id=0357 9 Fiscal Year 2013 Budget of the U.S. Government. Office of Management and Budget. Table S-9. 218. 10 Fiscal Year 2013 Budget of the U.S. Government. 67. 11 Department of Labor Budget Appendix, Fiscal Year 2013 Budget of the U.S. Government. Office of Management and Budget. 824. 12 Fiscal Year 2013 Budget of the U.S. Government. 111. 13 Department of Health and Human Services Budget Appendix. 474. 14 Department of Health and Human Services Budget Appendix. 511-512.
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Workforce Development, Job Creation and Education Workforce Development and Job Creation The FY 2013 budget proposal places major emphasis on education and workforce training to help build a more competitive workforce for 21st century jobs. While the current national unemployment rate stands at 8.3 percent, the unemployment rate among African Americans and Latinos is substantially higher. In January 2012, African-American men had the highest average unemployment rate of 12.7 and African-American women had a similar average unemployment rate of 12.6. Latino men and women had an aggregate unemployment rate of 10.5.15 The presidents budget calls for significant investments in programs designed to build human capital, in addition to linking unemployment insurance with workforce development programs. Given the disproportionate impact of unemployment on communities of color, efforts toward workforce development must be tailored to the particular challenges facing those communities. It is also critical that existing labor market segmentation and discrimination is taken into account, to ensure that communities of color and women are not underrepresented in new jobs. The presidents budget includes the following initiatives designed to stimulate hiring and infrastructure improvements that will spur job creation: $1.1 billion investment in the Career and Technical Education program (CTE), preparing adult workers for entryinto the current U.S. economy.16 $8 billion in funding to the Community Colleges initiative, a joint program between the Department of Education and Department of Labor, designed to connect skills with labor market needs.17 $50 billion in immediate spending by the Department of Transportation to improve transportation infrastructure and to create jobs in the short-term.18 $12.5 billion for the Pathways Back to Work Fund, which includes support for summer and year-round jobs for low-income youth and subsidized employment opportunities for low-income adults.19 $15 billion for Project Rebuild, a program that builds on the Neighborhood Stabilization Program, providing funding to hire local residents to redevelop and renovate vacant properties in the aftermath of the foreclosure crisis.20 Education The presidents budget makes targeted education funding a priority, in addition to proposing reforms to the Elementary and Secondary Education Act. Proposes enhancments to the Elementary and Secondary Education Act (ESEA), maintaining 2012 funding levels for Title I of the ESEA ($14.5 billion), while also consolidating 38 program authorities in 11 competitive grant programs designed to provide increased flexibility in federal education spending.21 $30 billion in funding to hire new teachers and retain existing teachers.22

Unemployment Situation. Bureau of Labor Statistics U.S. Department of Labor. January 2012. Department of Education Budget Appendix.Fiscal Year 2013 Budget of the U.S. Government. Office of Management and Budget. 386. 17 Fiscal Year 2013 Budget of the U.S. Government. 96. 18 Fiscal Year 2013 Budget of the U.S. Government. 158. 19 Fiscal Year 2013 Budget of the U.S. Government. 144. 20 Department of Housing and Urban Development Budget Appendix. Fiscal Year 2013 Budget of the U.S. Government. Office of Management and Budget. 622. 21 Fiscal Year 2013 Budget of the U.S. Government. 93-98. 22 Department of Education Budget Appendix. 417.
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$30 billion for school modernization to renovate and repair elementary and secondary school buildings.23 Increases funding for Race to the Top, a program designed to spur innovation in state and local school districts, by $300 million to $850 million.24 Maintaining current maximum Pell Grant funding and increasing the maximum yearly award from $4,860 to $5,63525 $100 million for Promise Neighborhood Grants, reflecting an increase of $10 million from FY 2012. The Promise Neighborhood Grant program supports high-need communities with the funding to implement comprehensive, place-based solutions to improve life outcomes for children and youth. Public Health and Healthcare The FY 2013 proposal includes funding increases for several programs that are critical to protecting public health, including the health of mothers and children. The budget proposal continues to provide funding for the Affordable Care Act (ACA), including $1.2 billion in funding for ACA mandated health centers26 and $868 million for the creation of state health insurance exchanges.27 The ACA is projected to extend healthcare coverage to an estimated 32 million Americans. The budget also includes a modest $3 million increase for research at the National Institute on Minority Health and Health Disparities. In addition to these changes, the budget proposal focuses on HIV/AIDS treatment and research. The budget allocates funds, for crucial programs that provide medication to low-income individuals suffering HIV/AIDS, as part of a $3.3 billion investment in a nationally coordinated HIV/AIDS strategy. An increase of $75 million ($2.4 billion) for the Ryan White HIV/AIDS program, which will expand access to care for those unable to afford treatment.28 $1 billion for state AIDS Drug Assistance Programs (ADAP) program, an increase of $67 million from FY 2012.29 A $30 million increase for Center for Disease Control funding to states for collaborative HIV/AIDS prevention measures.30 $50 million in added funding to Jobs-Plus, an employment program targeted to public housing residents, with the intention of creating 30,000 jobs.31 While the budget has invested in funding to fight HIV/AIDS, it also includes cuts to important programs that offer benefits to low-income communities that lack access to quality healthcare. $195 million in cuts to the Substance Abuse and Mental Health Services Administration.32 Elimination of the Preventative Health and Health Service Block Grant, which provided funding to prevent and control chronic health conditions such as heart disease, diabetes and arthritis.33

Department of Education Budget Appendix. 417. Fiscal Year 2013 Budget of the U.S. Government. 98. 25 Department of Education Budget Appendix. 393. 26 Department of Health and Human Services Budget Appendix. 475. 27 Department of Health and Human Services Budget Appendix. 502. 28 Department of Health and Human Services Budget Appendix. 474. 29 Ibid. 30 Department of Health and Human Services Budget Appendix. 484. 31 Department of Housing and Urban Development Budget Appendix. 609. 32 Fiscal Year 2013 Budget of the U.S. Government. 113. 33 Fiscal Year 2013. Cuts, Consolidations, and Savings. 4.
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$177 million in cuts to the Childrens Hospital Graduate Medical Education Payment Program, which provides federal funding for medical residencies at child health centers.34 Elimination of the Health Careers Opportunity Program, which assists individuals from disadvantaged backgrounds in gaining access to the requisite education to work as a healthcare professional.35 Housing, Community Development and Sustainability Considering the disproportionate impact of the foreclosure crisis in communities of color, and the subsequent increase in housing instability, adequate funding for programs that help provide housing security and set individuals on a path to home ownership is critical. The FY 2013 budget proposal contains a combination of cuts and increases to housing programs, some that represent decreased resources for vulnerable groups. The budget also includes programs designed to provide intersecting health, education and housing services to provide place-based solutions to urban poverty. Housing The presidents budget shifts funding for rental assistance, placing an emphasis on the Housing Choice Voucher, as opposed to rental assistance that is tied to a specific housing development. Also included are increases in the operations and capital budgets for public housing, funding to decrease homelessness and support of Federal Housing Administration (FHA) mortgage lending efforts. $149 billion in FHA-backed home loan guarantees. FHA loan guarantees are critical to asset development in communities of color. In 2010, 60 percent of African-American and 59 percent of Latino homebuyers purchased homes with FHA-backed loans.36 $640 million in cuts to project-based Section 8 rental assistance, while providing an additional $800 million in tenant-based rental assistance, or Housing Choice Vouchers.37 $2.2 billion for Homeless Assistance Grants, an increase of over $300 million from 2012.38 Increases the Public Housing Operating Fund by $600 million and increases the Public Housing Capital Fund by $200 million.39 In addition the proposed budget presents an unfavorable bundle of funding decreases and fee increases to programs that benefit vulnerable communities, including individuals living with HIV/AIDS and subsidized housing residents. A $4 million decrease in Housing Opportunities for Persons with AIDS, from $332 million to $328 million.40 An increase in the enforceable minimum subsidized housing payment, which may lead to increased housing instability among extremely low-income individuals, families and seniors.41

Fiscal Year 2013: Cuts, Consolidations, and Savings -Budget of the U.S. Government. Office of Management and Budget. 22. Fiscal Year 2013: Cuts, Consolidations, and Savings. 52. 36 Fiscal Year 2013 Budget of the U.S. Government. Office of Management and Budget. 124. 37 Fiscal Year 2013 Budget of the U.S. Government. 127. 38 Department of Housing and Urban Development Budget Appendix. 623. 39 Fiscal Year 2013 Budget of the U.S. Government. 127. 40 Department of Housing and Urban Development Budget Appendix. 617. 41 Murphy, Jarret. Obama Housing Cuts Eyes. Feb 14 2012. City Limits. Retreived on February 15, 2012 from http://www.citylimits.org/blog/ blog/194/obama-housing-cuts-eyed
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Community Development and Sustainability In addition to providing FHA homeownership supports, measures in the proposed budget also seek to bring financial resources to low-income communities, which can lead to increased asset development. The Obama administration has proposed the following investments to increase opportunity and economic growth in underserved communities: Increased capital to regions underserved by private financial institutions, including an increase in the number of SBA 7(a) loans, targeted at underserved communities.42 Level funding at $100 million for the Sustainable Communities Initiative, which funds place-based solutions to the housing, health and transportation needs of communities.43 $150 million for the Choice Neighborhoods Initiative, an increase of $30 million, to provide regional grants to support local planning efforts.44 The budget proposes the following cuts to vital community development programs, which provide support and services to low-income communities in urban centers. $160 million in cuts to the Community Development Block Grant, which provides funding for a wide-range of community development needs in low-income, urban communities.45 $329 million in cuts to the Community Services Block Grant, which funds over 1,000 community-action agencies that serve low-income communities across the country.46

Conclusion President Obamas budget proposal for FY 2013 is a vast improvement over the outcome in FY 2012, when calls for austerity led to cuts in government services that bolster the economic security of low-income families and individuals. Changes to the tax code, including an increase in the top marginal tax rate for high-income earners, will provide crucial funding for important government programs. By avoiding drastic cuts to food assistance programs, child care subsidies and early childhood education, the proposal helps preserve the economic security of millions of low-income families. The significant investments in workforce development included in the presidents budget may also prove a critical factor in decreasing crisis levels of unemployment in communities of color, provided that these funds target the communities most impacted by unemployment in the creation of quality jobs and economic growth.

Fiscal Year 2013 Budget of the U.S. Government. 191. Department of Housing and Urban Development Budget Appendix. 618. 44 Fiscal Year 2013 Budget of the U.S. Government. 127. 45 Fiscal Year 2013 Budget of the U.S. Government. 128. 46 Fiscal Year 2013: Cuts, Consolidations, and Savings. 30.
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