ASnapshotofthePresidentsBudgetFY2010 WhatsInItForRuralAmerica?

BrianDabson,May12,2009

PresidentObamatransmittedhisBudgetoftheUnitedStatesGovernmentforFiscalYear2010onMay7, 2009.Thebudgetdocumentsprovideprogrammaticdetailsandproposedappropriationslanguagetoput intoeffecttheplansoutlinedinthePresidentsbudgetoverview,ANewEraofResponsibility:Renewing AmericasPromisereleasedonFebruary26th.Totaloutlaysareprojectedatnearly$3.6trillionwithadeficit of$1.26trillionor8.5percentofGrossDomesticProduct.ThebudgetfocusesonthePresidentspriorities forhealthcare,energy,andeducation,butalsocontainsfundingforabroadrangeofprogramsacrossthe spectrumofFederalgovernmentactivities.Americanswillbeimpactedbymanyoftheproposalswherever theymaylive,butthereareseveralthathavebeenspecificallytargetedatruralpeopleandplaces.There arealsosomeproposalsthatcouldbenefitruralpeopleiftheformulasorregulationsareappropriately constructed. ItwillbeimportantforthoseengagedinruralpolicytobewatchfulasCongressgetsdowntoreviewingthe budgetindetailthroughtheappropriationsprocesssomeoftheproposedspendingwillnodoubtbe eliminatedorchanged,someoftheproposedcutswillbereinstated.Thefutureprosperityofthenation willbedependentupontheactiveparticipationofruraleconomies,whichinturnneedinvestmentsofthe kinddescribedinthebudget. OneofthebudgetdocumentsreleasedbytheOfficeofManagementandBudgetisTerminations, Reductions,andSavings.Thisitemizes121programstobecutorreducedinordertosavesome$17billion. AppendixAliststhosecutsandreductionsthathaveanidentifiableruralimpact.$147millionofcutshave beenmadeinnonagriculturalprograms,thelargestofwhichare$51millionfromtheterminationofthe Resource&ConservationDistrictprogram,$29millionfromtheDenaliCommission,and$26millionfrom theDeltaHealthInitiative.Inaddition,some$82millionforCongressionalearmarksinUSDAbudget,which supportawiderangeofruralprojectsandprograms,hasbeeneliminatedfromthebudgetforFY2010. Thisbriefisstructuredinmuchthesamewayasthepreviousone(March2,2009)andprovidesasnapshot ofsomeofthemainruralspecificproposalsaswellassomeofthosethatcouldhaveimportantspatial implications,andorganizestheseproposalsintoeightbroadcategories.Programsthatdonothaveexplicit spatialimplicationsaspresentedinthebudget,suchaseducationandnutrition,arenotincludedinthis summary.ItshouldalsobenotedthatthebudgetmakesseveralreferencestotheAmericanRecovery& ReinvestmentActof2009(ARRA)otherwiseknownastheStimulusparticularlywhereprogramsfunded underthatActareintegraltothebudgetproposalsforfutureyears. Thereaderisadvisedtogotowww.whitehouse.gov/omb/budgettoreadthefulltextofthePresidents budget,whichisgroupedbyFederaldepartment.Thereisalsoakeyissuesfactsheet,StandingwithRural America,atwww.whitehouse.gov/omb/fy2010_key_ruralamerica.

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S n a p s h o t o f t h e P r e s i d e n t s B u d g e t F Y 2 0 1 0 : WhatsInItForRuralAmerica?

 RegionalandRuralEconomicDevelopment

Provides$50millioninregionalplanningandmatchinggrantswithintheEconomicDevelopment Administration(EDA)tosupportthecreationofregionalinnovationclustersthatleverageregions existingcompetitivestrengthstoboostjobcreationandeconomicgrowth.(DOC) Launchesa$50millioninitiativeinEDAthatwillcreateanationwidenetworkofpublicprivate businessincubatorstoencourageentrepreneurialactivityineconomicallydistressedareas.(DOC) ARRAprovidesEDA$150milliontodistributeaseconomicadjustmentassistanceandinfrastructure funding,withpriorityforareasexperiencingseverejoblosses.(DOC) Provides$61millionforfiveRuralDevelopmentprograms:theruralmicroentrepreneurassistance program,ruralcooperativedevelopmentgrants,valueaddedproducergrants,grantstominority producers,andcooperativeresearchagreements.(DA) ExpandslendinginunderservedneighborhoodsbydoublingfundingfortheCommunity DevelopmentFinancialInstitutions(CDFI)Fund.Throughmeritbasedgrantprograms,theCDFIFund helpslocallybasedfinancialinstitutionsoffersmallbusiness,consumerandhomeloansin communitiesandpopulationsthatlackaccesstoaffordablecredit.(USDT) Providessmallbusinessfinancingthrough: o $17.5billioninguaranteesundertheSection7(a)GuaranteedLoanprogram o $7.5billioninguaranteeddebenturesintheSection504GuaranteedLoanProgram o $3billioninauthorityfortheSmallBusinessInvestmentCompanydebentureprogram o $25millioninMicroloanvolume,allowingintermediariestoprovidesmallloansand technicalassistancetoentrepreneursandotherstartupbusinesses.(SBA) Expandssmallbusinesscreditavailabilityandaffordabilitybyunfreezingthesecondarymarketsfor smallbusinessloansaspartofthelargerplantorevivetheflowofcreditintheNationseconomy. (SBA) ARRAprovidesSBAauthorityto: o Increaseguaranteepercentagesonnew7(a)loansto90percent,tohelpencouragelenders tomaketheseloans;providefundingtoenableSBAtotemporarilylowerfeesonboth7(a) and504loans;ExpandfundingfortheMicroloanprogram;Increasethesizeofbonds availableunderSBAssuretybondprogram.(SBA) Supportsresourcesfornoncredittechnicalassistanceprograms,providingentrepreneursaccessto counselingandbusinessdevelopmentexpertise,includingimprovementstoexistingprogramssuch asSmallBusinessDevelopmentCenters,WomensBusinessCenters,SCORE,andmicroloantechnical assistance.(SBA) SupportssmallbusinessaccesstoFederalprimeandsubcontractingopportunities,improvementsto smallbusinessprocurementdata,andcontinuedreviewsofsmallbusinesssizestandards.(SBA)

BroadbandDeployment
Provides$1.3billioninloansandgrantstoincreasebroadbandcapacityandimprove telecommunicationserviceandeducationandhealthopportunitiesinruralareas.(DA) TheNationalTelecommunicationsandInformationAdministration(NTIA)willbefocusedon administeringthe$4.7billionprovidedbyARRAforprogramstoexpandbroadbanddeployment, adoption,anddatacollection.(DOC) S n a p s h o t o f t h e P r e s i d e n t s B u d g e t F Y 2 0 1 0 : WhatsInItForRuralAmerica?

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HealthCare

Establishesareservefundofmorethan$635billionover10yearstofinancefundamentalreformof thehealthcaresystemaimedatbringingdowncostsandexpandingcoverage.Thereserveisfunded halfbynewrevenueandhalfbysavingsproposalsthatpromoteefficiencyandaccountability,align incentivestowardquality,andencouragesharedresponsibility.ARRAincluded$19billionforhealth informationtechnology,$1billionforcomparativeeffectivenessresearch,andsubsidiesforthe newlyunemployedtomaintaintheirhealthinsurance.(DHHS) Buildingonthe$19billioninvestmentinARRA,theAdministrationwillcontinueeffortstofurther theadoptionandimplementationofHealthIT.ARRAoffers: o PhysiciansandhospitalsparticipatingintheMedicareprogramtemporaryincentive paymentsstartingin2011forusingacertifiedelectronichealthrecord(EHR),followedby financialpenaltiesstartingin2015forfailuretousesuchasystem. o IncentivepaymentstoMedicaidproviders,includingphysiciansandchildrenshospitals,to assistwiththepurchase,implementation,anduseofcertifiedEHRtechnology.(DHHS) Invests$330milliontoaddresstheshortageofhealthcareprovidersincertainareas.(DHHS) Expandsloanrepaymentprogramsforphysicians,nurses,anddentistswhoagreetopracticein medicallyunderservedareas.(DHHS) Includesover$4.7billionfortheIndianHealthService(IHS)tosupportandexpandtheprovisionof healthcareservicesandpublichealthprogramsforAmericanIndiansandAlaskaNatives.(DHHS) Includes$73milliontoimprovebothaccesstoandqualityofhealthcareinruralareas.Thisfunding willstrengthenregionalandlocalpartnershipsamongruralhealthcareproviders,expand communitybasedpreventioninterventions,andpromotethemodernizationofthehealthcare infrastructureinruralareas.(DHHS) ExpandsthementalhealthscreeningandtreatmentservicesofferedbyVAandfocusesonreaching veteransinruralareas.VAwillincreasethenumberofVetCentersandmobilehealthclinicsto expandaccesstomentalhealthscreeningandtreatmentinruralareas.(VA) Includesnewfundingtohelpveteransandtheirfamiliesstayinformedoftheseresourcesand encouragethemtopursueneededcare.(VA)

RenewableEnergy

Ensuresthatruralareascontinuetheirleadershipinrenewableenergybysupportinganadditional $250millioninloansandgrantsforbiofuelsandwindpower.(DA) Providessupportforacceleratingresearch,development,demonstration,deployment,and commercializationofcleanenergytechnologies,includingbiofuels,renewableenergy,andenergy efficiencyprojects.(DOE) BuildoneffortsinARRAtocreateanew,smarterelectricgridfortheintegrationanduseofgreater amountsofrenewableenergy.(DOE)ARRAincludesfundsforregionaltransmissionplanningand interconnectionbasedtransmissionplanning,anda$100millionworkforcetrainingprogram.(DOE) Includesover$50millioninincreasestoconducttheenvironmentalevaluationsandtechnical studiesneededtospurdevelopmentofrenewableenergyprojects,assessavailablealternative resources,andmitigatetheimpactsofdevelopmentonpubliclands.(DOI) Improvinguponthe$12billionannuallyreceivedfromfees,royalties,andotherFederalpayments relatedtooil,gas,coal,andothermineraldevelopmentbyclosingloopholes,chargingappropriate fees,andreforminghowroyaltiesareset.(DOI) S n a p s h o t o f t h e P r e s i d e n t s B u d g e t F Y 2 0 1 0 : WhatsInItForRuralAmerica?

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Infrastructure
ARRAprovidedfundingforruralwaterandwastewatergrantsandloanstosupporta$3.8billion programlevelfortherepair,upgrade,andconstructionof2,000ruralwaterandsewersystems, providingneworimprovedserviceto3millionpeople.(DA) Providesa$52millionincreaseoverthe2009levelto$175milliontotheDepartmentof Transportationtofulfillcurrentprogramrequirementsasdemandforsubsidizedcommercialair serviceincreases.(DOT) IntendstoworkwiththeCongresstodevelopamoresustainableprogrammodelforruralaviation supportthatwillfulfillitscommitmentwhileenhancingconveniencefortravelersandimproving costeffectiveness.(DOT)

Conservation&NaturalResources
Providesa$68millionincreasefornationalforestoperationstoprotectnaturalresourcesand maintainfacilities,includingthosethatarerestoredwithARRAinvestments.(DA) Fundsthe10yearaveragesuppressioncosts,establishesadiscretionaryfundingreserve,and ensuresfiremanagementresourcesareusedinacosteffectivemannerinhighpriorityareas.The $282milliondiscretionarycontingentreserveprovidesfundingforfirefightingwhenthe$1.1billion appropriated10yearaverageisexhausted.(DA/DOI) Includes$120million,a$34millionincrease,inForestServicefundingthroughtheLandandWater ConservationFundtoacquireeasementsonforestedlandsundersignificantdevelopment pressures.(DA) SupportsseveralvitalconservationprogramsincludingtheConservationStewardshipProgram ($447million),theConservationReserveProgram($1.9billion),andtheEnvironmentalQuality IncentivesProgram($1.2billion)andconservationtaxincentivesthatwereprovidedinthe2008 FarmBill.(DA) Providesa$100millionincreaseinNationalParkoperations(plusinflation)toprotectthe investmentsmadethroughARRAandmaintainfacilitiesandnaturalresources.(DOI) Providesanadditional$25millionformatchingfundstoleverageprivatedonationsinpreparation forthe100thanniversaryoftheNationalParkService.(DOI) ConservesnewFederalandStatelandsandprotectsendangeredspecieswithappropriationsof about$420millionfromtheLandandWaterConservationFund,withannualincreasestoreachfull fundingof$900millionby2014.(DOI) AssistsStateandFederallandmanagementagencieswithover$130millioninadditionalfundingto monitor,adaptivelymanageandassesstheimpactsofclimatechangeontheNationslands,fish andwildlife.(DOI) Createseducationalandjobopportunitiesforyoungpeoplethroughexpandedenvironmental educationactivitiesandnewprogramstoencouragethemtohuntandfishresponsibly.(DOI) Anticipatesfuturecostsforcatastrophicwildfireswithanewcontingentfundingreserveof$75 millionfortheDepartmentoftheInterior.(DOI) Includesincreasesofmorethan$130million,ofwhich$40millionissharedwiththeStatesfor wildlifeadaptationtoclimatechange.(DOI)

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S n a p s h o t o f t h e P r e s i d e n t s B u d g e t F Y 2 0 1 0 : WhatsInItForRuralAmerica?

Increasesfundsby$10millionforNorthAmericanWetlandsConservationAct(NAWCA)activitiesto acquire,restore,orprotectwetlandsusedbymigratorywaterfowlandotherbirds.Thisisthefirst stepinfullyfundingNAWCAat$75millionby2012.(DOI) Providesfundingin2010foraWesternWaterConservationinitiative,whichincludestheBureauof Reclamationswaterreuseandrecycling(TitleXVI)program.Thegoalistoassistlocalcommunities availabilityofwaterbyencouragingvoluntarywaterbanks,wastewatertreatment,andother marketbasedconservationmeasures.(DOI)

CommunityDevelopment
ProvidesfullfundingfortheCommunityDevelopmentBlockGrantprogramat$4.5billionand reformstheprogramsformulatobettertargeteconomicallydistressedcommunities.Includes$25 millionfortheHUDRuralInnovationFundthroughacompetitiveprocesstopromotenew approachestoimprovingruralhousingconditions.(HUD) Includes$161millioninincreasedfundingtotheBureauofIndianAffairsforlawenforcementand education.AdditionalfundingisalsoavailablethroughtheDepartmentsofJusticeandEducation. (DOI) Providesanadditional$70millionforruralareas,forcompetitiveresearchgrantsthatprovide incentivesforteachersworkinginruralareastopursueprofessionaldevelopment,andtoenhance existingruralresearchandextensionprogramsatlandgrantandminorityservinginstitutions.This includes$28millioningrantstoimproveruralqualityoflife.(DA)

DA:USDepartmentofAgriculture;DOC:USDepartmentofCommerce;DOE:USDepartmentofEnergy;DHHS:USDepartmentof Health&HumanServices;HUD:USDepartmentofHousing&UrbanDevelopment;DOI:USDepartmentoftheInterior;DOT:US DepartmentofTransportation;USDT:USDepartmentoftheTreasury;VA:USDepartmentofVeteranAffairs;SBA:USSmallBusiness Administration.

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S n a p s h o t o f t h e P r e s i d e n t s B u d g e t F Y 2 0 1 0 : WhatsInItForRuralAmerica?

AppendixA Terminations,Reductions,andSavingsRuralAmerica
Terminations Program DeltaHealthInitiative DenaliAccess DenaliCommission DenaliJobTraining EconomicActionProgram HighEnergyCostGrant ResourceConservation&DevelopmentProgram RuralCommunityFacilities RuralEmpowermentZones/EnterpriseCommunities Total AgricultureRelated ConservationReserveProgramSetAsideforPublicAccess CottonStoragePayments Total Reductions Program TargetedFundingforAlaskanNativeVillageInfrastructure SpecialResearchGrants(Congressionalearmarks) AgricultureRelated CropInsurancePremiums,Underwriting&Fees MarketAccessProgram PaymentstoHighIncomeFarmers PhaseOutDirectPaymentstoFarmers(Sales>$500K) Total Dept 2010$m 20102014$m DHHS 26 DOT 6 DHHS 20 DOL 3 DA 5 DA 18 DA 51 DHHS 10 DA 8 147 DA 5 65 DA 52 279 57 344

Dept 2010$m 20102014$m EPA 9 DA 82 DA 0 2,050 DA 4 158 DA 58 108 DA 85 3,670 147 5,986

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S n a p s h o t o f t h e P r e s i d e n t s B u d g e t F Y 2 0 1 0 : WhatsInItForRuralAmerica?