Federal Update: Programs that Help Low- and Moderate-Income Families

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1 Federal Update: Programs that Help Low- and Moderate-Income Families April 21, 2015 David Lloyd Director, Fiscal Policy Center Voices for Illinois Children

2 The Federal Budget 2

3 Areas of Federal Spending Major Categories of Federal Spending Defense Discre7onary 17% Non- Defense Discre7onary 17% Mandatory 60% Debt Interest 6% Source: Congressional Budget Office 3

4 Areas of Federal Spending 4

5 Large Cuts Due to 2011 Budget Control Act 12-15% Cuts to Non Defense Discretionary Source: Center on Budget and Policy Priorities 5

6 Investments in Future Declining Non-Defense Discretionary Contain Vital Investments in Future 6

7 Investments in Future Declining 7

8 Long- Term Budget Picture Has Improved But We re Cut Many Vital Programs, Not Raised Much Revenue 8

9 Federal Gov t Reduces Child Poverty Earned Income Tax Credit and Food Stamps Particularly Important 9

10 Changes to Sequestration in

11 Agreement to Loosen Sequestration Spending Caps Increased by $45B in FY14 and $20B in FY15 Ø $1.025 billion increase for Head Start over last year ($500 million of the increase expands Early Head Start, which will increase enrollment nationwide by about 40,000 children) Ø $154 million increase for the Child Care and Development Block Grant over last year. The increase will support about 22,000 additional children. Ø $250 million for a new Preschool Development program Ø $700 million increase for Community Health Centers Ø $498 million increase for IDEA Special Education Grants Ø $498 million increase for Special Education Grants Ø $625 million increase for Title I / Disadvantaged Schools Ø $58 million increase for 21st Century Community Learning Centers 11

12 Federal Early Childhood Grants Illinois Awarded Two Large Grants Ø Illinois awarded $20 million federal grant to expand access to preschool. o However, state must increase own funding by $50 million to secure grant. Ø Four grantees in Illinois awarded total of $18.2 million for Early Head Start Child Care Partnerships. o City of Chicago - $4 million o Child Care Resource & Referral (Joliet) - $1.5 million o Proviso Leyden Council for Community Action (Maywood) - $1.2 million o City of Rockford - $600,000 12

13 Proposed Congressional Budgets 13

14 Harmful House/Senate Budget Proposals 14

15 Harmful House/Senate Budget Proposals Cuts Harm Low-Income Families Most 15

16 House Budget SpeciLics 16

17 Important Programs 17

18 SNAP (Food Stamps) Responds Extremely Quickly to Changes in Need 18

19 SNAP (Food Stamps) Participation Declining As Economy Improves 19

20 SNAP (Food Stamps) Program Most Helps Low-Income Families with Children 20

21 SNAP (Food Stamps) 21

22 Child Care and Development Block Grant Reauthorized Last November for First Time in Nearly Two Decades Ø Establishes provider training requirements in 10 topic areas Ø Requires background checks and on-site inspections Ø Establishes 12-month eligibility for children Ø Requires graduated phase out of subsidies for families whose income increases above state income eligibility limits Ø Requires increased education on child care options Ø Increases quality set-aside over five years Ø Increases professional development and training requirements States much submit FY plans next March. Plan starts June

23 Home Visiting MIECHV Extended Two More Years Ø Passed as part of Affordable Care Act Ø Provided $1.5 billion over 5 years Ø Extended for one year last spring. Ø Funding was set to expire, but was extended early this month. Ø Children s Health Insurance Program also extended two years. 23

24 Elementary and Secondary Education Act Reauthorization Efforts Currently Ongoing Ø Reauthorization would replace No Child Left Behind Ø Bipartisan bill passed Senate HELP Committee unanimously last week Ø House committee approved much more controversial bill earlier this year Ø Senate bill would create a grant program to improve coordination, quality, and access of early-childhood education. o Three-year grants to support "sustainable improvements and better coordination" of their early-learning and care systems. 24

25 Questions? 25

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