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Budget Update

Both the House and Senate are in session this week; just three more weeks of work before they break for the Fourth of July week. This week the House will take up the annual defense authorization bill, while the Senate completes work on its version of the farm bill and considers immigration legislation.

FY14 Appropriations: Last week the House passed its first two FY14 spending bills and should move another two by the end of this month. The House passed the Military Construction-VA and Homeland Security spending bills despite two veto threats, and Senate appropriators are set to mark up funding measures in the coming weeks. But the two chambers are operating off vastly different top-line budget numbers — given that the House and Senate haven’t come close to reaching a budget deal — meaning the measures may not come to the Senate floor and setting the stage for another stopgap spending bill this fall. At this point in the process, it appears that the House wants to pass the defense-related bills up front, leaving the later bills to be rolled up into a continuing resolution (CR) later in the year.

House appropriators are set to move two additional spending bills this week: Defense and Agriculture. House GOP leaders expect the bills on the floor before the July Fourth break. If those bills move through committee and pass the floor as expected, the House will have passed a quarter of its annual spending bills by the Fourth of July. The Senate, meanwhile, may not approve any of their spending bills before the break.

Debt Limit: Republicans continue to demand concessions in the form of deficit-reduction measures in return for increasing the government’s borrowing limit. Discussions are ongoing and there is still time to come to an agreement as the debt limit may not need to be addressed until this fall.

Furlough Friday courtesy of the Sequester

Today is the largest non-weather-related partial government shutdown in recent history thanks the Sequester. Around 115,000 people, which is approximately 5 percent of the federal workforce, will stay home thanks to Sequester mandated furloughs. That includes nearly all of the workers at the Environmental Protection Agency (EPA), Housing and Urban Development (HUD), and Office of Management and Budget (OMB), as well as some staffers for the Departments of Labor and Interior, who will get an unpaid day off for their Memorial Day weekend.

Across the country, mandated furloughs will increasingly empty agencies throughout the summer. The Pentagon will begin furloughs of 650,000 civilian workers on July 8; defense workers will get a five-day, unpaid holiday around Independence Day. HUD has six more furlough days scheduled for this summer. The IRS has scheduled four furlough days throughout August.

Summary of President’s FY14 Budget Request

Yesterday, President Obama released his FY14 budget request — nearly two months later than required by law. Much of the delay was blamed on the sequester and the prolonged FY13 appropriations process that resulted in a year-long continuing resolution (CR). In a typical year, the President’s Budget Request (PBR) kicks off the annual appropriations season, but with the delays, Congress has moved forward with their own budget proposals. This leaves us with three very different budget proposals with which to base the annual appropriations process. In other words, the process is once again sure to be a mess come later this fall. Our April Federal Update reviews the PBR and highlights those agencies and programs that we care about the most. You can also access the PBR and all the supporting documents at: http://www.whitehouse.gov/omb/budget.

Tuition Assistance Restored in CR

One of the notable provisions included in the year long CR (HR 933) was the restoration to Tuition Assistance (TA) programs for active duty service members. Previously this month, the Army and the Marine Corps decided not to continue their respective TA programs after March 8, 2013 because of cuts from the sequester.  An amendment offered by Seantors James Inhofe (R-OK) and Kay Hagan (D-NC)  passed by voice vote in the Senate yesterday. The House subsequently approved by the Senate CR today with no additional changes.

The bill, which will now go to the President for his signature, requires all branches of the armed services to provide TA for service members.

Military Tuition Assistance Programs Zeroed Out by Sequester

One of the first causalities of the the federal Sequester is the Tuition Assistance (TA) program provided by the Army and Marine Corps. Following the Marines Corps lead, the Army announced on Friday, March 8th that soldiers will not be allowed to enroll in TA-funded courses after the day of the annoucement. The Marines announced on Thursday, March 7th. Both programs would not go forward after March 8th. Soldiers who are currently in courses may complete their classes, but may not pay for additional courses with TA.

Military TA programs provide up to $4,500 per year for active-duty troops who are attending high school completion courses and certificate programs, or are working toward college degrees. According to the Army, 201,000 soldiers took advantage of the Army’s TA program in fiscal year 2012. The TA program provided $373 million, helping 2,831 soldiers earn associate degrees, 4,495 earn bachelor degrees and 1,946 receive graduate degrees.

The Navy and the Air Force are considering similar cuts, but as yet, have not publicly decided to follow suit.

UW estimates this will keep 100 soldiers from using TA in the Spring Quarter across all three campuses.