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President’s 2010 Budget May Increase Key Local Priority Programs

By Conference Staff
March 9, 2009


Although the details of his 2010 Budget have not been released, President Barack Obama submitted an outline of his budget to Congress on February 26, which suggests that many local priorities will be increased or fully funded in Fiscal Year 2010. The document only provides funding highlights of the Administration’s priorities, and not detailed information on funding levels for various programs. A more detailed budget will be submitted later in April, at which time the Conference staff will offer a more detailed analysis of local priority programs.

The following highlights some of the key local priorities in the President’s 2010 budget outline:

Housing

  • Provides $4.5 billion for the Community Development Block Grant program (CDBG). The Administration proposes to “change” the current CDBG formula that will require approval by Congress. The proposed action is worded in the budget proposal as follows: “the Budget reforms the program’s formula to better target economically distressed communities.” This is the only inference the proposal mentions about the formula change.

  • Provides $1 billion for the Affordable Housing Trust Fund to finance the development and rehabilitation of affordable housing for low-income residents.

    Justice and Public Safety

  • Includes funding to begin hiring 50,000 additional police officers through the COPS program.

  • Includes $109 million for the Prisoner Reentry programs, including $75 million for the Second Chance Act.

    Transportation

  • Builds on the $8 billion included in the American Reinvestment and Recovery Act for high'speed rail. The proposal marks a new federal commitment to high'speed rail by proposing a five-year, $5 billion high'speed rail state grant program.

  • Provides $800 million to move the nation from a ground-based radar system to satellite-based system.

  • Increases funding for public transit to support commuters, improve air quality and reduce greenhouse gases.

  • Details on the funding levels for other Transportation programs (i.e., highway and transit) were not included in the outline.

    Energy

  • While the President’s budget outline does not specifically speak to the Energy Efficiency and Conservation Block Grant, it does say that it will build upon $6.3 billion provided for clean energy and energy efficiency grants to state and local governments in the American Reinvestment and Recovery Act.

    Children, Health and Human Services

  • Creates a new $630 billion reserve fund over the next ten years to finance fundamental reform of our health care system to bring down the cost of health care and expand coverage.

  • Provides $3.2 billion for the Low-Income Home Energy Assistance Program (LIHEAP) to help low-income families with their home heating and cooling expenses.

  • Provides an additional $1 billion to double the number of children served by Head Start.

  • Makes permanent the “Making Work Pay Tax Credit,” a refundable income tax credit that offsets the payroll tax on up to the first $6,450 of earnings for about 95 percent of all American workers.

  • Makes permanent the increase in the “Child Tax Credit” that was approved in the American Reinvestment and Recovery Act.

    Environment

  • Provides $3.9 billion, for the Clean Water and Safe Drinking Water State Revolving Funds (SRFs). The Administration calls this “an unprecedented federal commitment to water infrastructure in the United States.”

    Commerce/Census Bureau

  • Provides $4 billion in additional funds to ensure that the Census Bureau has the funds it needs to complete the 2010 Census.

    Trouble Asset Relief Program (TARP) II

  • Includes “a $250 billion contingent reserve for further efforts to stabilize the financial system (the reserve, which reflects a net cost to the government would support $750 billion in asset purchases).”

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