The National Association of State Budget OfficersSome federal agencies have begun to issue guidance to federal funding recipients regarding the implementation and impact of sequestration. Three recent notices are summarized below and links to the guidance are included below as well.
DOL – Unemployment Insurance Programs
On Friday, the Employment and Training Administration (ETA) at the Department of Labor (DOL) sent a letter to state workforce agencies regarding implementation of the sequester for Unemployment Insurance (UI) programs for fiscal 2013. The letter advises state agencies on how DOL plans to apply sequestration to UI programs to help inform states’ planning efforts. According to the letter, DOL will apply the reductions to UI programs in general on or after March 31, 2013 to provide states time to plan for the budget cuts. DOL will also not apply the percentage reductions to benefits that have already been paid. The letter details which programs are exempt, describes the impact of sequestration on non-exempt UI programs, and explains state responsibilities in planning for the sequester.
HHS – Administration for Community Living Programs
The Administration for Community Living released estimates of the sequester’s impact for state formula grant programs under the Older Americans Act. State-by-state estimates are provided for State and Community Programs (such as Home and Community-Based Supportive Services and Home Delivered Nutrition Services), Vulnerable Elder Rights Protection Activities, and the Nutrition Services Incentive Program. The guidance explains that statutory factors used to determine funding allocations that vary across programs and will thus result in varied magnitudes of the reductions among states. The guidance also includes additional information on the major factors impacting state allocations for each program.
HHS – Head Start Programs
The Administration for Children and Families (ACF) at the U.S. Department of Health and Human Services recently issued instruction to Head Start grantees regarding the impact of sequestration. The memorandum advises grantees that their grants will be reduced by approximately 5 percent, and that all state, regional and national activities will also be reduced by at least 5 percent. The guidance instructs agencies to begin planning for the adjustments in order to maintain functions at the reduced funding levels. ACF informs grantees that they will grant as much flexibility and assistance as possible to help maintain high quality services and ensure the health and safety of children and families, minimize disruptions to children currently enrolled this program year, and take steps to reduce enrollments and program workforce as necessary – particularly in the upcoming program year.