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Under Threat Sequestration’s Impact on Nondefense Jobs and Services A report by Sen. Tom Harkin, Chairman, Senate Appropriations Subcommittee on Labor, Health and Human Services, and Education, and Related Agencies July 25, 2012 Foreword Under the Budget Control Act, most Federal programs face an across-the-board cut in January 2013 if Congress does not enact a plan before then to reduce the national debt by $1.2 trillion. So far, we’ve heard a great deal about sequestration’s effects on Pentagon spending. The defense industry has highlighted the potential impact of an across-the-board cut on defense-related jobs and services. Some members of Congress are now demanding that we exempt the Pentagon from sequestration, either by finding offsets for the defense cuts only or by making nondefense programs bear the full brunt of the entire $1.2 trillion in cuts. But sequestration wouldn’t apply only to defense. It would also have destructive impacts on the whole array of Federal activities that promote and protect the middle class in this country – everything from education to job training, medical research, child care, worker safety, food safety, national parks, border security and safe air travel. These essential government services directly touch every family in America, and they will be subject to deep, arbitrary cuts under sequestration. Some members of Congress warn that defense contracting firms will lay off employees if sequestration goes into effect. They say nothing of the tens of thousands of teachers, police officers, and other public servants in communities all across America who would also lose their jobs. A laid-off teacher is just as unemployed as a laid-off defense contractor. In fact, the economic effects of cuts to nondefense programs could be worse than cuts to Pentagon spending. A December 2011 study found that investing $1 billion in health care or education creates significantly more jobs within the U.S. economy than spending $1 billion on the military. In health care, the difference is 54 percent more jobs; in education, 138 percent. A July 2012 study commissioned by the Aerospace Industries Association found that sequestration’s cuts to nondefense spending would reduce the U.S. gross domestic product during fiscal years 2012-21 by a greater amount ($77.3 billion) than cuts to defense spending ($72.1 billion). So it’s important to have an accurate assessment of the potential impact of sequestration on the nondefense side of the budget. To that end, this report provides a detailed, State-level analysis of sequestration’s effects on dozens of education, health and labor programs under the jurisdiction of my subcommittee in fiscal year 2013. Among the highlights:  States and local communities would lose $2.7 billion in Federal funding for just three critical education programs alone – Title I, special education State grants, and Head Start – that serve a combined 30.7 million children. Nationwide, these cuts would force 46,349 employees to either lose their jobs or rely on cash-strapped States and localities to pick up their salaries instead. Under Threat | Prepared by Senate Appropriations Committee Majority Staff Page 2  In health, 659,476 fewer people would be tested for HIV, 48,845 fewer women would be screened for cancer; and 211,958 fewer children be vaccinated.  At a time when the unemployment rate is still above 8 percent, 1.6 million fewer adults, dislocated workers and at-risk youth would receive job training, education and employment services; and the families of 80,000 fewer children would receive child care subsidies, making it harder for parents to find work.  In Iowa, the State I represent, 4,677 fewer people would be admitted to substance abuse treatment programs, 496 fewer veterans would receive employment assistance, and 1,588 fewer students would receive Federal Work Study financial aid. Similar data are available for other States. This report explains why my Democratic colleagues and I adamantly oppose any unbalanced approach that protects the Pentagon and the wealthiest 2 percent in our society while ignoring cuts to nondefense services, including education, that are so critical to the middle class. Nondefense discretionary (NDD) spending already has absorbed significant reductions through the 10-year spending caps in the Budget Control Act and other measures. By 2021, this category of spending will account for just 2.8 percent of the U.S. gross domestic product, its lowest level in more than 50 years. Today, NDD programs comprise about one-sixth of the Federal budget. It defies not only reason, but also fairness and equality, to suggest that we can erase our national debt by slashing critical priorities like education and medical research while holding Pentagon spending harmless and expecting the wealthiest among us to sacrifice nothing. A better, fairer solution is needed. It’s the same way we solved our previous budget crises in 1982, 1984, 1990, 1993 – with a balanced approach that includes both spending reductions and new revenue. In the five years following the 1993 deficit-reduction law, the U.S. economy created over 15 million new jobs; not only did we balance the budget, we were on course to completely eliminate the national debt within a decade. We can repeat this success. We don’t have to reinvent the wheel. I hope this report will motivate members of both parties to embrace a spirit of compromise. The time for ideological posturing is past. We all agree that sequestration would be tremendously destructive. We all want to avoid it. That means we all must come together with good will to hammer out a balanced agreement that will not only prevent sequestration, but reduce our deficit and protect America’s families. Senator Tom Harkin Chairman Senate Appropriations Subcommittee on Labor, Health and Human Services, and Education, and Related Agencies Under Threat | Prepared by Senate Appropriations Committee Majority Staff Page 3 A Note on the Data This report examines the potential impact of sequestration on nondefense discretionary (NDD) programs under the jurisdiction of the Senate Appropriations Subcommittee on Labor, Health and Human Services, and Education, and Related Agencies. The responsibility for implementing sequestration would rest with the Office of Management and Budget, which has not yet announced how it would carry out this process if it turns out to be necessary. The Congressional Budget Office (CBO) estimated in September 2011 that NDD programs (except those that are exempted or otherwise specifically addressed by the Budget Control Act) would face an across-the-board cut of 7.8 percent in fiscal year 2013; calculations in this report are based on that assumption. It’s important to note that the actual impact of sequestration could be even greater. The Center on Budget and Policy Priorities, for example, estimates that NDD programs would be cut by 8.4 percent in fiscal year 2013. Under the Budget Control Act, sequestration would be applied to fiscal year 2013 appropriations levels. Since those levels are still unknown, calculations in this report are based on fiscal year 2012 levels. The report includes the impact of sequestration on job losses when available data make it possible to calculate those figures with confidence. When the report does not include job data for a particular program, it does not mean that sequestration would have no impact on employment; in most of these cases, jobs would be lost, but it is difficult statistically to measure the specific impact. Therefore, the actual number of jobs that are lost as a result of sequestration would be significantly higher than what is described in the report. In addition, this report highlights only a limited number of programs under the subcommittee’s jurisdiction. Additional layoffs would also result from cutting many other subcommittee programs not highlighted in the report. Finally, the report estimates only the number of jobs that would be directly impacted by sequestration; it does not attempt to calculate the number of jobs that would be indirectly affected. Under Threat | Prepared by Senate Appropriations Committee Majority Staff Page 4 Table of Contents (click on the program name or State to go directly to data) Table of Contents ...............................................................................................................................5 Department of Health and Human Services ........................................................................................8 Head Start ................................................................................................................................................. 9 Child Care and Development Block Grant .............................................................................................. 11 Maternal and Child Health Block grant ................................................................................................... 13 AIDS Drug Assistance Program................................................................................................................ 15 HIV Prevention and Testing .................................................................................................................... 17 Breast and Cervical Cancer Screening..................................................................................................... 19 Childhood Immunization Grants ............................................................................................................. 21 Public Health Emergency Preparedness Grants...................................................................................... 23 National Institutes of Health ................................................................................................................... 25 Survey and Certification of Health Care and Long-Term Care Facilities ................................................. 27 Low Income Home Energy Assistance Program...................................................................................... 29 Community Services Block Grant ............................................................................................................ 31 Family Violence Prevention and Services ............................................................................................... 33 Substance Abuse Prevention and Treatment ......................................................................................... 35 Senior Nutrition ...................................................................................................................................... 37 Department of Education ................................................................................................................. 39 Title I Grants to Local Educational Agencies ........................................................................................... 41 School Improvement Grants ................................................................................................................... 43 Improving Teacher Quality State Grants................................................................................................. 45 21st Century Community Learning Centers ............................................................................................ 47 Impact Aid ............................................................................................................................................... 49 Special Education Grants to States ......................................................................................................... 51 Special Education Preschool State Grants .............................................................................................. 53 Special Education Grants for Infants and Families ................................................................................. 55 English Language Acquisition State Grants ............................................................................................. 57 State Grants for Career and Technical Education ................................................................................... 59 Federal Work Study................................................................................................................................. 61 Supplemental Educational Opportunity Grants...................................................................................... 63 Department of Labor........................................................................................................................ 65 Workforce Investment Act State Grants ................................................................................................. 66 WIA Adult State Grants ....................................................................................................................... 66 WIA Dislocated Worker State Grants.................................................................................................. 67 WIA Youth State Grants ...................................................................................................................... 69 Job Corps ................................................................................................................................................. 71 Employment Service ............................................................................................................................... 73 Veterans Employment and Training ....................................................................................................... 75 Social Security Administration .......................................................................................................... 77 Under Threat | Prepared by Senate Appropriations Committee Majority Staff Page 5 State-by-State Tables ....................................................................................................................... 79 Alabama .................................................................................................................................................. 80 Alaska ...................................................................................................................................................... 82 Arizona .................................................................................................................................................... 84 Arkansas .................................................................................................................................................. 86 California ................................................................................................................................................. 88 Colorado .................................................................................................................................................. 90 Connecticut ............................................................................................................................................. 92 Delaware ................................................................................................................................................. 94 District of Columbia ................................................................................................................................ 96 Florida ..................................................................................................................................................... 98 Georgia .................................................................................................................................................. 100 Hawaii ................................................................................................................................................... 102 Idaho ..................................................................................................................................................... 104 Illinois .................................................................................................................................................... 106 Indiana .................................................................................................................................................. 108 Iowa....................................................................................................................................................... 110 Kansas ................................................................................................................................................... 112 Kentucky................................................................................................................................................ 114 Louisiana ............................................................................................................................................... 116 Maine .................................................................................................................................................... 118 Maryland ............................................................................................................................................... 120 Massachusetts ...................................................................................................................................... 122 Michigan................................................................................................................................................ 124 Minnesota ............................................................................................................................................. 126 Mississippi ............................................................................................................................................. 128 Missouri ................................................................................................................................................ 130 Montana................................................................................................................................................ 132 Nebraska ............................................................................................................................................... 134 Nevada .................................................................................................................................................. 136 New Hampshire..................................................................................................................................... 138 New Jersey ............................................................................................................................................ 140 New Mexico .......................................................................................................................................... 142 New York ............................................................................................................................................... 144 North Carolina ....................................................................................................................................... 146 North Dakota......................................................................................................................................... 148 Ohio ....................................................................................................................................................... 150 Oklahoma .............................................................................................................................................. 152 Oregon .................................................................................................................................................. 154 Pennsylvania ......................................................................................................................................... 156 Rhode Island.......................................................................................................................................... 158 South Carolina ....................................................................................................................................... 160 Under Threat | Prepared by Senate Appropriations Committee Majority Staff Page 6 South Dakota......................................................................................................................................... 162 Tennessee ............................................................................................................................................. 164 Texas ..................................................................................................................................................... 166 Utah....................................................................................................................................................... 168 Vermont ................................................................................................................................................ 170 Virginia .................................................................................................................................................. 172 Washington ........................................................................................................................................... 174 West Virginia ......................................................................................................................................... 176 Wisconsin .............................................................................................................................................. 178 Wyoming ............................................................................................................................................... 180 Under Threat | Prepared by Senate Appropriations Committee Majority Staff Page 7 Department of Health and Human Services The Department of Health and Human Services (HHS) is the principal federal agency for protecting the health of all Americans. Services provided by HHS include biomedical research, care and treatment of Kathleen Sebelius, Secretary, Department of Health vulnerable populations, public and Human Services health, human services, and many others. Testifying before the Senate Labor, Health and Human Services, and Education Appropriations In fiscal year 2012, this subcommittee appropriated over Subcommittee $69.6 billion in discretionary March 7, 2012 funding to HHS, all of which would be subject to “If it were a close to 8 percent cut, we … have about 17 sequestration. This report million meals that would not be delivered to seniors analyzes the potential state-byrelying on congregate meals and home delivery. The state impact of sequestration on AIDS program would have to reduce its caseload by 15 key HHS programs over 12,000 people who are currently receiving representing a combined $20.1 billion, or 29 percent, of the antiretroviral drugs…. NIH is 40 percent of our budget. department’s discretionary They would take a huge hit…. So it would have a huge funding. The total impact on each impact across our Department…. And as you know, state would of course be much these programs affect real people every day and are larger when other programs are often life-and-death issues.” taken into account. Under Threat | Prepared by Senate Appropriations Committee Majority Staff Page 8 Head Start Head Start provides competitive grants to local organizations to provide comprehensive early childhood services for low-income children and families. High-quality early childhood education has been proven to have lasting effects for children and families and save taxpayer dollars in the long run by reducing costs for welfare, special education, and criminal justice. This year, approximately 960,000 low-income Fewer low-income children served children will be enrolled in Head Start programs across the country, representing less than 50 percent of eligible pre-school-aged children and only 4 percent of eligible infants and toddlers. 96,179 For more information on Head Start, click here: Head Start Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi FY 12 Funding $126,116,169 $14,419,094 $122,132,816 $75,414,696 $961,007,656 $81,054,790 $58,941,861 $15,390,494 $27,955,348 $314,303,816 $199,225,857 $25,675,399 $27,338,956 $315,321,673 $115,587,883 $59,455,800 $59,990,295 $125,903,734 $168,513,211 $31,634,330 $89,677,330 $123,113,621 $268,517,307 $84,052,860 $180,887,414 FY 13 Sequester Cut $9,837,061 $1,124,689 $9,526,360 $5,882,346 $74,958,597 $6,322,274 $4,597,465 $1,200,459 $2,180,517 $24,515,698 $15,539,617 $2,002,681 $2,132,439 $24,595,090 $9,015,855 $4,637,552 $4,679,243 $9,820,491 $13,144,030 $2,467,478 $6,994,832 $9,602,862 $20,944,350 $6,556,123 $14,109,218 Fewer Children Served 1,584 180 1,517 949 11,902 1,016 735 194 349 3,915 2,486 320 340 3,948 1,449 747 757 1,579 2,111 393 1,117 1,524 3,364 1,055 2,287 Under Threat | Prepared by Senate Appropriations Committee Majority Staff Head Start Jobs Lost 330 38 316 198 2,480 212 153 40 73 816 518 67 71 823 302 156 158 329 440 82 233 318 701 220 477 Page 9 Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming American Samoa Guam Northern Mariana Islands Virgin Islands Tribal Migrant Program Palau Technical Assistance/Other Total FY 12 Funding $139,405,592 $24,061,558 $42,321,541 $30,055,175 $15,590,172 $150,054,190 $62,748,895 $495,549,593 $172,280,427 $20,123,364 $287,577,410 $97,976,084 $70,527,514 $262,631,620 $278,932,535 $25,123,227 $99,522,604 $21,673,818 $137,557,725 $561,394,575 $45,256,053 $15,191,416 $115,652,122 $117,831,024 $58,385,484 $105,517,607 $13,480,863 $2,272,537 $2,487,795 $1,758,940 $9,454,227 $224,600,547 $327,409,528 $1,409,343 $261,096,418 $7,968,543,933 FY 13 Sequester Cut $10,873,636 $1,876,802 $3,301,080 $2,344,304 $1,216,033 $11,704,227 $4,894,414 $38,652,868 $13,437,873 $1,569,622 $22,431,038 $7,642,135 $5,501,146 $20,485,266 $21,756,738 $1,959,612 $7,762,763 $1,690,558 $10,729,503 $43,788,777 $3,529,972 $1,184,930 $9,020,866 $9,190,820 $4,554,068 $8,230,373 $1,051,507 $177,258 $194,048 $137,197 $737,430 $17,518,843 $25,537,943 $109,929 $20,365,521 $621,546,427 Fewer Children Served 1,745 301 530 371 194 1,855 783 6,119 2,146 251 3,608 1,236 902 3,305 3,504 312 1,246 272 1,717 7,022 567 187 1,444 1,456 734 1,324 169 36 32 23 117 2,779 4,054 20 Head Start Jobs Lost 364 63 110 77 41 387 163 1,275 447 52 752 258 188 689 730 65 260 57 358 1,463 118 39 301 303 153 276 35 8 7 5 24 579 845 4 96,179 20,037 Under Threat | Prepared by Senate Appropriations Committee Majority Staff Page 10