Budget Blog

July 25, 2016 - Washington Report

By Brukie Gashaw posted 07-25-2016 04:27 PM

  

This Week on the Hill

The House and Senate are in recess until September 6.

 

Commerce Issues Notice on Alternative State Path to FirstNet Connection

On Tuesday the National Telecommunications and Information Administration at the U.S. Department of Commerce (NTIA) issued a Public Notice outlining the alterative path states could take to connect to the First Responder Network Authority’s (FirstNet) nationwide public safety broadband network. FirstNet must offer to build radio access networks (RANs) in states that connect first responders to the core of FirstNet’s broadband network. However, states also have the option to opt-out, and assume the cost and responsibility of building RANs on their own. This public notice provides preliminary guidance on the process NTIA is developing to review applications for its State Alternative Plan Program (SAPP) from states seeking to deploy their own RANs; a state seeking to opt out and build its own RAN will need to negotiate a spectrum capacity lease with FirstNet and may also apply to NTIA for grant funds for the construction. Public comments may be submitted to NTIA through August 18.

 

CDC Releases $60 Million to Localities for Zika Response Efforts

On Thursday the Centers for Disease Control and Prevention (CDC) announced the release of nearly $60 million to states, cities, and territories to fight the Zika virus. This new funding will be available to jurisdictions August 1 and is in addition to $25 million awarded on July 1 as part of the center’s preparedness and response funding to states, cities and territories at risk for outbreaks of Zika. The new funding will be distributed through CDC’s Epidemiology and Laboratory Capacity for Infectious Diseases Cooperative Agreement to support activities to protect the health of Americans, including epidemiologic surveillance and investigation, improving mosquito control, and monitoring and strengthening lab capacity.

 

President Announces Clean Energy Program for Low- and Moderate- Income Households

Last week the administration announced a new cross-governmental partnership to increase access to solar energy and promote energy efficiency across the country and in particular, in low- and moderate- income communities. The Clean Energy Savings For All Initiative will connect the departments of Energy, Housing and Urban and Development, Agriculture, Health and Human Services, Veteran’s Affairs and the Environmental Protection Agency in ensuring that every household has options to choose to go solar and increase energy efficiency. In collaboration with state agencies, the administration is announcing a new goal to bring 1 gigawatt of solar to low- and moderate-income families by 2020. To achieve this goal, the initiative will promote innovative financing mechanisms, bolster technical assistance for states and communities, drive innovation, scale up workforce training to take advantage of clean energy jobs, convene stakeholders, and work with the private and philanthropic sectors.

 

Education Releases Rule on State Authorization of Distance Learning

The U.S. Department of Education recently released a proposed rule to clarify the state authorization requirements for post-secondary distance education. Currently under the Higher Education Act, institutions must be authorized in the state in which they are located as a condition for eligibility to receive Title IV federal student aid. While all higher education institutions must have state authorization in the states in which they are physically located, there are no federal requirements for distance education providers in states where the institutions are not located. The proposed regulations address this by requiring institutions offering distance education to be authorized by each state in which the institution enrolls students, if such authorization is required by the state; authorization may also be granted through a state authorization reciprocity agreement. Additional information on the proposed regulations can be found here. Public comments will be accepted through August 24.

 

Transportation Launches Infrastructure Financing Bureau

The U.S. Transportation Secretary announced on Wednesday the launch of the Build America Bureau, which will streamline credit and grant opportunities, provide technical assistance and encourage innovative best practices in project planning, financing, delivery and monitoring. The Build America Bureau will combine multiple Department of Transportation (DOT) programs: the Transportation Infrastructure Finance and Innovation Act (TIFIA); the Railroad Rehabilitation and Improvement Financing (RRIF); the private activity bond (PAB); the Build America Transportation Investment Center (BATIC); and the new $800 million Fostering Advancements in Shipping and Transportation for the Long-Term Achievement of National Efficiencies (FASTLANE) grant program. The bureau seeks to serve as the single entity in charge of DOT credit, as well as the single point of contact for customers working with DOT on infrastructure finance and development. More information on the bureau can be found here.

 

USDA Releases Final Rules on Snack Foods and Wellness Programs

Last week the U.S. Department of Agriculture released four final rules related to snack foods and school wellness programs. The rules mark the final set of regulations required under the 2010 Healthy, Hunger-Free Kids Act (PL 111-296). The four rules include: the Smart Snacks in School rule, which aims to use practical, science-based nutrition standards that ensure children are offered more fruits, vegetables and whole grains, while giving states flexibility to allow limited exemptions for school fundraisers; the Local School Wellness Policy rule, regulating the marketing of food and beverages on school campuses while also setting up a process to engage parents and students in the development of school wellness policies; the Community Eligibility Provision rule, to streamline administrative processes; and the Administrative Review rule, updating the administrative review process used by state agencies to monitor federally-funded school meal programs. The individual final rules can be found here.

 

CMS Releases 2015 Actuarial Report on Medicaid

The Centers for Medicare and Medicaid Services (CMS) Office of the Actuary released the 2015 Actuarial Report on the Financial Outlook for Medicaid.  The report found that Medicaid expenditures increased by 12.1 percent in federal fiscal year (FFY) 2015, totaling $554.3 billion, with the federal share representing 63 percent of total cost. State Medicaid expenditures are estimated to have increased by 5.9 percent in FFY 2015 to reach $206.8 billion. Medicaid enrollment increased by 7.7 percent to reach 68.9 million in FFY 2015 with nearly all of the growth in enrollment attributed to the newly eligible adults for the states that expanded Medicaid under the Affordable Care Act. Over the next 10 years, expenditures are projected to increase at an average annual rate of 6.4 percent to reach $920.5 billion by 2024. Average enrollment is projected to average 1.9 percent each year and reach 77.5 million in 2024.  

 

Recently Released Reports

State Financial Aid: Applying Redesign Principles through State Engagement, Education Commission of the States

Overview of Health Insurance Exchanges, Congressional Research Service

What Tax Brackets are Americans In?, Tax Policy Center

Promoting Community Living for Older Adults Who Need Long-Term Services and Support, U.S. Administration for Community Living

The DATA Act Vision and Value, DATA Foundation

 

Economic News

Unemployment Rates Stable in 43 States in June

New data from the Bureau of Labor Statistics shows that most regional and state unemployment rates saw little change in June; 43 states and the District of Columbia had stable unemployment rates, 6 states had significantly higher rates and 1 state had lower rates. Compared to one year earlier, 32 states had no notable net change, while two states had increases and 16 states and the District of Columbia had notable unemployment rate decreases. The national jobless rate rose by 0.2 percentage point from May to 4.9 percent, which is 0.4 percentage point lower than in June 2015. Nonfarm payroll employment increased in 18 states in June, decreased in 3 states and the District of Columbia and was essentially unchanged in 29 states. In June, no region had an unemployment rate significantly different from the U.S. rate of 4.9 percent. Compared to one month earlier, only the west had a statistically significant unemployment rate change (+0.1 percentage point). However, significant over-the-year rate decreases occurred in three regions: the south and west (-0.6 percentage point each) and northeast (-0.5 point).