By Larry Jones and Conference Staff
February 15, 2010

The President submitted his budget request to Congress on February 1, proposing significant increases for a number of city priority programs in Fiscal Year 2011. The proposal calls for: doubling Community Oriented Policing Services (COPS) from $298 million to $600 million; adding $110 million to the Homeland Security First Responder Programs; increasing the Choice Neighborhoods public housing program for severely distressed residents from $65 million to $250 million; adding an additional $989 million to the Head Start early childhood development program; increasing Youth Training and Summer Youth Jobs by $100 million; and increasing Homeless Assistance Grants by $190 million. These are just a few of the many increases called for in the new budget for city priority programs.

Also Community Development Block Grants, which provide direct funds to local governments to promote community and economic development, would receive level funding at $3.990 billion. The Byrne Justice Grants, which provide assistance to local communities to help curb violent crimes, would also be level funded at $519 million.

Further, the President’s budget includes a new $4 billion National Infrastructure Innovation and Finance Fund to encourage investments in projects of regional or national significance. Funds would be available in the form of grants, loans or a combination of both to local and state governments on a competitive basis. Multimodal projects including highway, transit, rail, aviation, ports and maritime would be eligible for funding.

President Obama also requested $527 million in the Department of Transportation budget for the Livable Communities program to help local and state governments make smarter investments in transportation infrastructure and leverage that investment to integrate transportation, housing, and other critical investments aimed at reducing greenhouse gases, improving mobility and transportation access to economic opportunity, and improving housing choices.

While the Conference is pleased that the President’s budget includes increases for many key city priorities, mayors remain very concerned that no funds are included for a Conference top priority, the Energy Efficiency and Conservation Block Grants (EEBCG), which is authorized to be funded at $2 billion annually.

Below is a more detailed summary of the funding levels for key city priority programs listed under major categories. A budget chart listing more programs and comparing funding levels in the proposed 2011 budget with the current and previous fiscal years follows the narrative summary.

The overall Community Development Fund would be reduced from $4.450 billion to $4.380 billion. But formula grants provided to local governments to promote community and economic development would be funded at last year’s funding level of $3.990 billion.

A new initiative proposed in the CDBG account, called the Catalytic Competition Grants, would be funded at $150 million. The Catalytic Competition Grants would be targeted to economically hard hit neighborhoods for large'scale development that would create jobs. The Sustainable Communities Initiative (for improved coordination of transportation and housing investments), funded at $150 million in FY 2010, would receive the same level of funding in FY 2011.

Choice Neighborhoods, though not yet authorized by Congress, would be funded at $65 million in FY 2010. The FY 2011 budget would fund the program, which replaces HOPE VI (the severely distressed public housing program), at $250 million. Choice Neighborhoods would transform distressed neighborhoods, which have public and assisted housing.

The Homeownership Investment Partnerships (HOME) program would be cut from $1.821 billion to $1.647 billion. Homeless Assistance Grants would be increased from $1.865 billion to $2.055 billion. Section 8 Tenant-Based Assistance is increased from $18.184 billion to $19.557billion. The Housing Opportunities for Persons with AIDs (HOPWA) program would be increased from $335 million to $340 million.

Also, the Public Housing Capital Fund would be reduced from $2.500 billion to $2.044 billion, while the Public Housing Operating Fund would be increased from $4.775 billion to $4.829 billion. The Brownfields Economic Development Initiative would be terminated. The Section 202 Elderly program, funded at $825 million, and the Section 811 program for Persons with Disabilities, funded at $300 million in FY 2010, would be cut to $273 million and $90 million, respectively, in FY 2011. Both programs are to be redesigned so as to better target resources.

The FY 2011 Budget requests a $722.5 million increase for state, local and tribal law enforcement assistance programs, bringing total program funding to $3.364 billion. Funding for COPS hiring and retention grants would be doubled from $298 million this year to $600 million next year. A 10 percent match would be required, but the COPS Director could waive it. Byrne Justice Assistance Grants are level-funded at $519 million. Violence against Women programs would increase five percent to $438 million.

The budget proposes several new initiatives, including $25 million for a community-based violence prevention initiative intended to reduce gun and other violence among youth gangs, $40 million for a new Byrne Criminal Justice Innovation Program which would support demonstrations in a limited number of sites, $37 million for a Children Exposed to Violence initiative, $10 million for smart policing initiative, and another $10 million for a smart probation initiative.

Funding for southwestern and northern border prosecutions (funded at $33 million this year), methamphetamine enforcement and cleanup ($40.4 million this year), Weed and Seed ($20 million this year), and several programs which distribute earmarked funds – notably Byrne discretionary grants and COPS Technology grants – are proposed for elimination. Juvenile Justice programs would be cut 32 percent to $290 million.

For prisoner reentry programs, the Justice Department budget would provide $144 million, including $100 million for Second Chance Act programs and $30 million for residential substance abuse treatment, both of which would be funded at current year levels. The Labor Department would provide $103 million for reintegration of ex-offender training programs, slightly less than the $110 million available this year. The Education Department would provide $17.2 million for workplace and community training grants for incarcerated individuals, the same as is available this year.

The Justice Department budget also contains language to continue the current provisions, which allow state and local police and prosecutors access to the Firearms Trace System database for use in connection with a criminal investigation or prosecution. The provision, however, does not allow law enforcement officials to share that information with elected officials or the public.

Funding for state and local programs at the Department of Homeland Security would decline about four percent next year to $4 billion. Funding for State Homeland Security Grants would increase by $110 million to $1 billion next year, but several smaller programs which total $250 million in funding this year would be eliminated and their purposes be made eligible activities under the state block grant. These are citizen corps ($12 million this year), driver’s license security (Real ID) ($48 million), interoperable emergency communications grants ($151 million), and Medical Response System/Medical Surge grants ($39 million). Urban Area Security Initiative Grants would increase 29 percent to $1.1 billion next year.

Firefighter assistance grants would be funded at $610 million (a cut of more than one-fourth below the $810 million available this year). Funds would be split evenly between the Assistance to Firefighter Grants and SAFER Grants, with each receiving $305 million. This year Assistance to Firefighter Grants are funded at $390 million and SAFER grants at $420 million.

For transportation security, port and mass transit security grants are level funded at $300 million each, retaining the 25 percent cut below the FY 2009 level of $400 million for both programs. The budget proposes $734 million to support the deployment of up to 1,000 new Advanced Imaging Technology screening machines at airport checkpoints and new explosive detection equipment for baggage screening in 2011. It does not appear to provide, however, infrastructure grants to airports to be used for the installation of this equipment. The budget includes funding for 300 new Customs and Border Patrol officers for passenger and cargo screening at ports of entry.

The President’s budget request provides $28.4 billion for the Department of Energy. The Department of Energy’s Office of Energy and Efficiency and Renewable Energy programs received $2.4 billion, an increase of $113 million, or approximately 5 percent above the FY 2010 appropriation. The Federal budget request referenced the $3.2 billion appropriated under the America Reinvestment Recovery Act for the Energy Efficiency and Conservation Block Grant (EECBG) program. However, the FY 2011 budget request does not include additional funds for EECBG, which was authorized in the Energy Independence and Security Act of 2007 at $2 billion for FY 2010.

The President’s budget request for the Weatherization and Intergovernmental Activities represents an increase of $115 million from the FY 2010 appropriation. The budget request increases the Weatherization program by $90 million. It also includes a $25 million increase for the State Energy Program. The Renewable Energy Production Incentive would be eliminated. The budget request for the Office of Electricity Delivery and Energy Reliability, which has the lead on modernizing the electric grid, is $185.9 million, $14 million above the FY 2010 budget. The FY 2011 budget also instructs DOE to discontinue license application for a high-level nuclear waste repository at Yucca Mountain.

The President proposes to increase the U.S. Department of Transportation’s (DOT) Budget from $76.9 billion in FY 2010 to $78.8 billion in FY 2011. This includes $4 billion to create a National Infrastructure Innovation and Finance Fund to provide grants, loans and a blend of both local and state governments for multimodal projects of regional and national significance that include highway, transit, rail, aviation, ports, and maritime. The budget states, “This marks an important departure from the federal government’s traditional way of spending on infrastructure through grants to specific states and localities.”

As part of the President’s multi-agency Partnership for Sustainable Communities, the budget includes $527 million to help local and state governments invest smarter in transportation infrastructure and leverage that investment to integrate transportation, housing, and other critical investments aimed at reducing greenhouse gases, improving mobility and transportation access to economic opportunity, and improving housing choices. This is in addition to the $150 million made available for the program from the Department of Housing and Urban Development and the $10 million from the Environmental Protection Agency. More details are needed to clarify how the Livable Communities program will work at the local and regional levels. The Conference looks forward to working with the Administration to develop the details.

The President’s budget builds on the $8 billion included in the American Reinvestment and Recovery Act (ARRA) for high'speed rail by including an additional $1billion for capital grants to invest in high'speed corridors and intercity passenger rail service. While this supports the President’s five-year, $5 billion commitment made in the 2010 Budget, the $1 billion is a 60 percent decrease from the $2.5 billion in FY 2010. The budget increases Amtrak funding from $1.56 billion to $1.63 billion. In Amtrak’s FY 2011 Grant and Legislative Request, the railroad is asking for $2.19 billion which is the amount authorized under the Passenger Rail Investment and Improvement Act of 2008.

The Budget increases the Federal Highway Administration’s (FHWA) budget on the obligation limitation on the federal-aid highways program from $41.1 billion to $41.3 billion. And, it would increase the Federal Transit Administration’s (FTA) budget from $10.73 billion to $10.79 billion. Of this amount, $30 million is requested to fund Rail Transit Safety Oversight activities embodied in the Administration’s rail transit safety legislation, the Public Transportation Safety Program Act of 2009. Unlike other modes of transportation, in general, federal safety regulators do not oversee subways and light rail systems.

Speaking to the next federal surface transportation bill, the budget states, “Surface transportation programs are at a cross-roads. The current framework for financing and allocating surface transportation investments is not financially sustainable, nor does it effectively allocate resources to meet our critical national needs. The Administration recommends extending the current authorization through March 2011, during which time it will work with the Congress to reform surface transportation programs and put the system on a viable financing. Careful consideration is needed to design a federal surface transportation program that leads to higher performing investments, increases people’s transportation options, promotes a sustainable environment, and makes our economy more productive. Further, the federal program must generate the best investments to reduce congestion and improve safety.”

The budget would increase spending on Federal Aviation Administration (FAA) Operations from the current funding level of $9.3 billion to $9.7 billion in FY 2011. The Airport Improvement Program (AIP) is level funded at $3.5 billion and FAA Facilities and Equipment would increase from $2.93 billion to $2.97 billion. Of this amount, the budget provides $1.14 billion, more than a 30 percent increase from FY 2010 for the Next Generation Air Transportation System. NextGen is the FAA’s long-term effort to improve the efficiency, safety, and capacity of the aviation system by moving from a ground-based radar surveillance system to a more accurate satellite-based surveillance system.

The President’s budget would decrease overall funding for the Environmental Protection Agency (EPA) to $10.020 billion, a $300 million decrease over the current fiscal year. EPA is claiming this is a minor adjustment from last year’s record high budget, which was the highest level of funding for EPA in its history.

The Clean Water State Revolving Loan Fund, a means of financial support for local wastewater treatment facilities, would receive $2 billion, down from $2.1 billion in FY 2010. Although this represents a $100 million decrease, this is still significantly higher than the $689 million that was enacted in FY 2009. The Drinking Water State Revolving Loan Fund was budgeted at $1.287 billion, another decrease of $100 million from FY 2010 but, once again, a substantial increase from the $829 million enacted in FY 2009.

The portion of the Brownfields program that provides funds to local governments and communities saw a significant increase from $101 million enacted in FY 2010 to a proposed $138 million in FY 2011. The Superfund program would be decreased slightly to $1.293 billion from $1.3 billion in FY 2010. EPA has proposed $300 million, a decrease of $175 million, for the Great Lakes Restoration Initiative due to an inability to get the money through the budget process and spend the money. EPA is also requesting $6.3 million for the Clean, Green, and Healthy Schools Initiative.

In the area of climate change, EPA is asking for $20.8 million to support the greenhouse gas reporting rule, $55.5 million to expand the Energy Star program, $30 million for Clean Air Act Greenhouse Gas (GHG) Permitting, $6 million to develop GHG standards for transportation sources, $7.1 million for carbon capture and sequestration, and $7.5 million in GHG New Source Performance Standards.

The President’s budget for the Department of Labor (DOL) calls for $3.93 billion in funding for Workforce Investment Act (WIA) programs – with a $209 million increase in WIA formula funding streams over the FY 2010 funding levels. WIA Adult formula grants would be funded at $907 million and Dislocated Worker job training grants would be funded at $1.25 billion, modest increases of $45 million and $62 million respectively over FY 2010 levels. The budget funds the Dislocated Worker national reserve at $229 million.

Youth training would see a $100 million increase to $1.025 billion for WIA Youth formula grants, with a requirement that 30 percent of the funding be allocated to Summer Youth activities. Also, the YouthBuild program would be funded at $120 million, a $17 million increase over the current fiscal year.

The President’s budget provides $98 million for Reintegration of Ex-Offenders, which includes Youth Offender Reentry programs. This represents a decrease of $ 11 million in funding over the FY 2010 level. The Job Corps program remains at the FY2010 level of $1.7 billion. Included in this amount is funding for operations, construction, rehabilitation and acquisition of Job Corp centers, and other necessary expenses of the Office of Job Corps.

The Administration’s budget also calls for the creation of a new $261 million program for a Workforce Innovation Partnership fund, to be administered in jointly by the Departments of Labor (DOL) and Education – $154 million of the Youth formula funding stream would go to the Youth Innovation Fund to pilot innovative models for delivering Summer and year-round work experiences and comprehensive services to disconnected youth. Five percent of the Adult and Dislocated Worker formula funding streams would go to support and test “Learn and Earn” strategies like apprenticeships and on-the-job training; promote regional and sectoral collaborations; and support other innovations.

DOL would work closely with the Department of Education to administer the innovation grants and use them as a mechanism for encouraging cities and states to work across programs to improve service delivery and participant outcomes.

The budget provides $85 million for green jobs training, a $45 million increase over FY 2010, as well as $40 million for transitional jobs as part of funding for Pilots, Development and Research.

Finally, the President’s budget establishes a transparent accountability system to support efforts to overhaul performance measures and incentives to discourage “creaming.” This Workforce Data Quality Initiative is funded at $13.75 million, a $1.2 million increase over FY 2010 levels and establishes competitive grants to support the development of longitudinal data systems to integrate education and workforce data.

For FY 2011, the President’s budget request includes $49.7 billion for the Department of Education’s discretionary programs, an increase of $3.5 billion over FY 2011. The budget provides a $3 billion increase in K-12 education programs to $28 billion for programs authorized by the Elementary and Secondary Education Act (ESEA), plus up to $1 billion in additional funding if Congress successfully completes an overhaul of ESEA. Together, this represents the largest funding increase for ESEA programs ever requested, and represents the consolidation of 38 K-12 programs into 11 new programs outlined below.

The budget provides $14.5 billion for college and career-ready students, which replaces grants to local education agencies. Funds would be allocated via formula for programs that provide academic support to help students in high-poverty schools meet college- and career-ready standards.

The budget funds Excellent Instructional Teams at $3.86 billion to increase teacher effectiveness and reduce disparities in access to high quality teachers for disadvantaged students. This funding consolidates nine existing programs into three programs: Effective Teachers and Leaders ($2.5 billion), Teacher and Leader Innovation Fund ($950 million) and Teacher and Leader Pathways ($405 million).

The Effective Teaching and Learning for a Complete Education proposal is funded at $1.015 billion and builds on the Administration’s efforts to raise academic standards and instruction and consolidates 15 existing programs into three new programs each with a dedicated focus on one of the following academic areas: literacy ($450 million); science, technology, engineering and math (STEM - $300 million); and other subjects that contribute to a well-rounded education including history, civics, arts and foreign language ($265 million).

The Expanding Educational Options proposal is funded at $490 million, and supports increasing the supply of high-quality educational options available to students in low performing schools including charter schools, and by implementing comprehensive systems of public school choice. This proposal consolidates five existing programs into one.

The budget provides $900 million in School Turnaround grants to permanently support grants to states to help local education agencies turn around their lowest achieving schools by implementing one of four rigorous school intervention models.

The President’s budget permanently establishes the Race to the Top program, which was created under the American Recovery and Reinvestment Act, and funds it at $1.35 billion to create incentives for state and local reforms and innovations designed to lead to improvements in student achievement, high school graduation rates and college enrollment rates, along with significant reductions in achievement gaps. The budget expands the competition for Race to the Top funding from states to school districts that are ready for comprehensive reform.

Supporting School Success is funded at $1.8 billion and promotes comprehensive strategies to create safe and drug-free learning environments for students. This proposal consolidates six programs into the new Successful, Safe and Healthy Students program ($410 million); and incorporates Promise Neighborhoods ($210 million) and 21st Century Community Learning Centers ($1.17 billion).

The American Recovery and Reinvestment Act and 2009 appropriations bill increased the maximum Pell grant by more than $600 for a total award of $5,350, which increases to $5,550 in 2010. The President’s budget proposes to make that increase permanent, make Pell grant funding mandatory rather than an entitlement funded through an annual appropriations process, and put Pell grants on a path to grow faster than inflation every year, to ensure that adequate Pell grant funding is available every year (for a maximum Pell grant of $5,710 in the 2011-2012 school year).

Finally, the budget supports the Student Aid and Fiscal Responsibility Act (SAFRA) that has passed the House and is pending in the Senate that would reform student lending to eliminate tens of billions of dollars in subsidies to banks and provide loans directly to students. These savings would be used to make historic investments to increase college access, including a proposal to increase the Perkins Loans total annual amounts available to students to $6 billion from the current $1 billion beginning on July 1, 2011. In addition to expanded Pell grants, these investments include $10.6 billion for the American Graduation Initiative that will strengthen and support community colleges, focus on college completion and graduate five million more students by 2020.

The Budget request includes $290 million for health centers to provide affordable high quality primary and preventive care to underserved populations. Additionally, the budget includes a $1 billion increase for child nutrition programs to support the child nutrition program reauthorization, including the Child and Adult Care Food Program. It also includes a $1.6 billion increase for CCDBG (Child Care Development Block Grant), the largest increase in funding in more than 20 years, of which $800 million would be discretionary funds (appropriated on annual basis and which does not require a state match) and $800 million would be mandatory funds (which would require a state match). Mandatory funding would be adjusted each year for inflation after FY 2011.

The American Recovery and Reinvestment Act provided HHS $650 million to implement evidenced-based prevention and wellness strategies through the Communities Putting Prevention to Work Initiative. As part of this initiative, CDC will mobilize local resources at the community-level and strengthen the capacity of States to implement strategies that improve physical activity and nutrition, address obesity, and decreases smoking prevalence and exposure to second-hand smoke. In FY 2011, CDC will continue to provide programmatic support to communities and States participating in this initiative. The increased FY 2011 investments in Health Promotion include $20 million for the CDC Big Cities Initiative to reduce the rates of morbidity and disability due to chronic disease in up to ten of the largest U.S. cities.

The President’s FY 2011 budget invests $3 billion in the Centers for Disease Control and Prevention (CDC) and Health Resources and Services Administration (HRSA) to expand access to affordable health care and prevention services for HIV/AIDS. It also expands and strengthens early education and child care programs by further extending ARRA’s expansion of Head Start and Early Head Start, providing an increase of $1.6 billion for child care including a $989 million increase for a total of $8.2 billion for Head Start and Early Head Start.

The Administration is requesting $161 million each for the National Endowment for the Arts and the National Endowment for the Humanities in FY 2011, which, in both cases, would be a slight reduction from the $168 million available for both programs in FY 2010.