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NATIONAL ASSOCIATION OF DEVELOPMENT ORGANIZATIONS
REGIONAL STRATEGIES. PARTNERSHIPS. SOLUTIONS
June 8, 2012 ● Executive Directors Leadership Forum ● Park City, Utah
About NADO
           Strengthen local
           governments, communities
           and economies through
           the regional
           strategies, partnerships, and
           solutions of the nation’s
           regional development
           organizations Economic Growth. Modern Infrastructure Assets.
NADO.org




                Jobs and Sustained
                      Workforce Readiness. Quality of Life. Vibrant Communities.
NADO Federal Policy Agenda
           White House and Hill Review of Regional Development Programs

           EDA Appropriations and Reauthorization

           SAFETEA-LU Reauthorization, with MPO and RPO Provisions

           HUD Community Development Block Grant (CDBG) Funding

           Key programs such as Fed-State Commissions, WIA, SBA and EPA

           FEMA Support for State and Local Preparedness and Response

           HUD-DOT-EPA Sustainable Development Initiative
NADO.org




           USDA Rural Development in 2012 Farm Bill
A Sense of Politics…

           “Politics is the art of postponing decisions
                until they are no longer relevant.”

                        ~ Henri Queuille
NADO.org
The Political Landscape
Congressional approval has fallen to its
                       lowest point in history
           Do you approve or disapprove of the way Congress is handling its job?
           90
                                                                  82%
           80
           70
           60
           50
           40
           30
                                    12%
           20
           10                   Approve                    Disapprove
NADO.org




           0
                               National Gallup survey (March 27, 2012)
House Elections
DEM         GOP     OUTLOOK

       Partisan                          190
                                                           242    +24 Margin
      Breakdown                     (+3 Vacancies)

 Seats up in 2012                                    435         218 is magic #

        TOSS UP                                10          14       TOSS UP
          LEAN D                                8           3       LEAN R
          LEAN R                                4          15       LEAN D
         LIKELY D                              13          25       LIKELY R
         SOLID D                               153         181      SOLID R
Source: Cook Political Report, March 8, 2012




                                U.S. HOUSE: 2012 ELECTION CYCLE
DEM        GOP   OUTLOOK

       Partisan
                                         51 + 2 Is        47
      Breakdown
                                                     33
 Seats up in 2012
                                               23         10
         TOSS UP                                7          3    TOSS UP
          LEAN D                                3          0    LEAN R
          LEAN R                                1          0    LEAN D
         LIKELY D                               4          2    LIKELY R
         SOLID D                                8          5    SOLID R
Source: Cook Political Report, March 1, 2012




                              U.S. SENATE: 2012 ELECTION CYCLE
U.S. Senate: 2012 Election Cycle
            Democratic Races – Toss Up     GOP Races – Toss Up
              Hawaii Open (Akaka)            Brown (MA)
              McCaskill (MO)                 Heller (NV)
              Nebraska Open (Nelson)
                                             Maine Open (Snowe)
              New Mexico Open (Bingaman)
              Tester (MT)
              North Dakota Open (Conrad)
              Virginia Open (Webb)
              Wisconsin Open (Kohl)
NADO.org
Presidential Election
USA Today May 5, 2012

                        12 KEY PRESIDENTIAL
                        BATTLEGROUND STATES
In the first USA
                                         Today/Gallup swing-state
                                         poll conducted since Mitt
                                            Romney became the
                                          presumptive Republican
                                           nominee, Romney and
                                         President Barack Obama
                                         are nearly tied -- 45% vs.
                                             47%, respectively --
                                         among registered voters
                                           in the 12 battleground
                                          states that make up the
                                                     poll.
USA Today May 5, 2012

                        12 KEY PRESIDENTIAL
                        BATTLEGROUND STATES
Politico: May 16, 2012




Republican Candidates Delegate Tally
Presidential Campaign

           President Obama
            Base remains strong BUT
              Major anxiety with job
              market and
              economy, especially GAS
              prices

              Independents are
NADO.org




              key, especially women
Presidential Benchmark:
           What Direction Is the Nation Headed?
NADO.org
Economic Concerns Continue to Be
           Cited as Most Important Problem
               What is the most important problem facing our country today?
NADO.org




                                                                  Gallup: Jan. 2012
The Obama Advantage


            Standing President

                No Primary

           Fundraising Capability
NADO.org
Presidential Approval Rating Average: 48%
Key Take Away Points

            The focus by the American public on government spending is
             unprecedented

            Voters are angrier now than 2006, 2008 or 2010. It will be
             another very turbulent election

            A majority of Americans believe the country has been on the
             wrong track– with no end in sight

            Simply based on his ability to fundraise, President Obama will be
             a formidable candidate no matter the state of the economy
NADO.org
Context for Federal Policy and Budget Debates
Federal Budget Picture

           Debt Ceiling: Hit $15 Trillion in November 2011
             Fed govt. borrows 40 cents of every dollar spent now
             Today, national debt is now 69% of GDP vs. 2008 was 40%
             CBO estimates rise to 109% by 2023 if no change – the record
             set in WWII
NADO.org
Outlays           FY2000     FY2005     FY2010      FY2012     FY00-12
                                                       Estimate    Change
Appropriations

 Defense / Security     $278B      $443B      $815B       $881B      + $603B

      Non-Security      $339B      $487B      $491B       $462B      + $123B

Mandatory

         Medicare       $199B      $290B      $446B       $468B      + $269B

          Medicaid      $117B      $194B      $273B       $269B      + $152B

  Other Mandatory       $123B      $337B      $644B       $598B      +$ 475B

Debt Interest           $220B      $178B      $196B       $240B       + $20B

   TOTAL OUTLAYS       $1.790T    $2.479T    $3.456T     $3.729T    +$ 1.939T




                      FEDERAL BUDGET TRENDS FY2000-2012
ABSENT REFORMS, DEBT IS SET TO
SKYROCKET IN THE COMING DECADES




     Sources: Congressional Budget Office (January 2012) and Bipartisan Policy
August 1   Budget Control Act of 2011 (S. 365)
Debt Deal: Overview of Major Components

            Debt Ceiling Increase With Required Reductions in
            Deficit
              $2.1 to $2.4 trillion

            Discretionary Spending Caps
              $900 billion in spending reductions over 10 years

            Joint Select Committee on Deficit Reduction (Super
            Committee)
              Goal: Find $1.5 trillion in additional deficit reduction
              Or else…automatic sequestration
NADO.org
UNDERSTANDING THE BREAKDOWN
         OF SEQUESTRATION LEVELS
                        Distribute remaining       Evenly split each
Total “triggered” cut
                             $984 billion             year’s cut
     $1.2 trillion
                        evenly among fiscal      between defense and
                                years                non-defense
                            2013 to 2021              accounts

   Subtract 18
 percent in debt           $109.3 billion
 service savings                                 Defense Non-defense
                             per year
                                               $54.7 billion $54.7 billion
SEQUESTRATION LEVELS
FY13
   FEDERAL
APPROPRIATIONS
FY2013 Federal Budget &
           Appropriations

            Senate FY13 discretionary spending level:
            $1.043 trillion

            House FY13 discretionary spending level:
            $1.028 trillion
NADO.org
EDA: Budget Background
           President’s FY2013 request: $219M
              $38M below FY12 enacted level ($257.5M) = 15% cut

              $64.43M below FY11 enacted level ($283.43M) = 23% cut

              $74M below FY10 enacted level ($293M) = 25% cut

           EDA’s final FY12 funding total of $457.5M included $200M for
           disaster assistance and $257.5M for programs and operations

           Since FY2001, funding for EDA’s core economic development
           assistance programs has decreased by approximately 50 percent!
NADO.org
Economic Development Administration

                                                                  FY2013
                                                                               FY2013
    Budget figures are in millions.              Final FY2012   President’s               FY2013 House
                                                                               Senate
                                                                 Request

    Economic Development Administration              457.50 *         219.71    237.71          219.00


                              Planning Grants           29.00          27.00     29.00           27.00
                                 Public Works         111.64           65.50     62.20           85.50
                Economic Adjustment Grants              50.06          65.20     56.50           40.20
                          Technical Assistance          12.00          12.00     12.00           12.00
                       Research & Evaluation             1.50           1.50       1.50           1.50
              Trade Adjustment & Assistance             15.80          15.80     15.80           15.80
NADO.org




                Regional Innovation Program              0.00          25.00     25.00            0.00
                           Disaster Assistance       200.00 *           0.00       0.00           0.00
Economic Development Administration

                           Amendments to H.R. 5326
             House FY13 Commerce-Justice-Science Appropriations Bill

           Michaud Amendment: to restore a $38 million cut to EDA with a $38 million funding
           offset from the Census Bureau’s periodic census account
              The Michaud amendment was defeated by a 190-218 vote

           Pompeo Amendment: to eliminate EDA
             The Pompeo amendment was defeated by a bipartisan vote of 129-279

           Scalise Amendment: to reduce the salaries and expense line items for three U.S.
           Department of Commerce accounts, including EDA’s operations account by $7.5
           million
              The Scalise amendment was defeated by a vote of 174-233
NADO.org
HUD CDBG Program
                                                                         FY12
           Agency       Program          FY10      FY11      FY12     President’s
                                                                         Plan
                         Community
                     Development Block
           HUD         Grants (CDBG),
                                        $3.99 B   $3.34 B   $2.94 B    $2.94 B
                    Entitlement Program


                  FY13 Senate Draft T-HUD Appropriations Bill= $3.1 B

                  FY13 House Draft T-HUD Appropriations Bill =$3.34 B
NADO.org
SAFETEA-LU

TRANSPORTATION
  REAUTHORIZATION BILL
NADO Priorities for
           Transportation Reauthorization:

             Strengthen  role of rural local officials in the
              statewide transportation planning and
              investment process by establishing and giving
              federal recognition to RTPOs for areas outside
              the boundaries of MPOs

             MPO   Threshold Issue
                  More than 200 of the nation's 382 MPO's would
                  lose their MPO designation if threshold was
                  changed
NADO.org
Transportation: Senate
            Senate’ s Moving Ahead for Progress in the 21st Century (S. 1813)
            ▪   Passed floor on March 14 as two-year, $109 billion bill (FY2012-2013)
            ▪   Maintains existing funding levels, adjusted for inflation
            RTPO Language:
            ▪   Establishes rural local official consultation process “separate and
                discrete” from the general public
            MPO Issues:
            ▪   Sets threshold for new MPOs at 200,000
            ▪   Existing MPOs 50,000 - 200,000 - new multi-step process to maintain
                MPO status
NADO.org
Transportation: House
           House reauthorization bill:
              American Energy and Infrastructure Jobs Act of 2012 (H.R. 7)
              Five-year, $262.9 billion bill
              House passed 90-day extension and authorized the Keystone XL pipeline on May 18
              RTPO Language: Includes NADO-championed language
                 State DOTs may establish RTPOs for areas outside of MPOs
                 Elevates local official role from “consultation” to “cooperation” for long-range
                 transportation plan, STIP, and project selection
                 If state does not recognize RTPOs, the state shall continue to “consult” with locals
              MPO Issue:
                 Sets threshold for new MPOs at 100,000
                 Existing MPOs 50,000- 200,000 are grandfathered
NADO.org




                 PROBLEM: When MPO and state disagree on project of state-wide
                 significance, Governor can override MPO
Transportation: Key Players

           47 House and Senate Conferees have been named
             14 Senate Conferees
                8 Democrats, 6 Republicans
                ½ of Senate conferees negotiated 2005 SAFETEA-LU


             33 House Conferees
                20 Republicans, 13 Democrats
                8 of the 20 Republicans are Freshmen (7 from the T&I Committee)
                14 of the 33 House conferees negotiated 2005 SAFETEA-LU
NADO.org
2012 NADO Annual Training Conference
October 13 – 16 | The Mirage | Las Vegas, NV
National Association of Development Organizations (NADO)

             and the NADO Research Foundation
       400 North Capitol Street, NW | Suite 390 | Washington, DC 20001

        NADO.org | Ruraltransportation.org | Knowyourregion.org

                         Regionalcouncilguide.org

                      202.624.7806 | Info@nado.org


             Regional Strategies. Solutions. Partnerships.

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Cox

  • 1. NATIONAL ASSOCIATION OF DEVELOPMENT ORGANIZATIONS REGIONAL STRATEGIES. PARTNERSHIPS. SOLUTIONS June 8, 2012 ● Executive Directors Leadership Forum ● Park City, Utah
  • 2. About NADO Strengthen local governments, communities and economies through the regional strategies, partnerships, and solutions of the nation’s regional development organizations Economic Growth. Modern Infrastructure Assets. NADO.org Jobs and Sustained Workforce Readiness. Quality of Life. Vibrant Communities.
  • 3. NADO Federal Policy Agenda White House and Hill Review of Regional Development Programs EDA Appropriations and Reauthorization SAFETEA-LU Reauthorization, with MPO and RPO Provisions HUD Community Development Block Grant (CDBG) Funding Key programs such as Fed-State Commissions, WIA, SBA and EPA FEMA Support for State and Local Preparedness and Response HUD-DOT-EPA Sustainable Development Initiative NADO.org USDA Rural Development in 2012 Farm Bill
  • 4. A Sense of Politics… “Politics is the art of postponing decisions until they are no longer relevant.” ~ Henri Queuille NADO.org
  • 6. Congressional approval has fallen to its lowest point in history Do you approve or disapprove of the way Congress is handling its job? 90 82% 80 70 60 50 40 30 12% 20 10 Approve Disapprove NADO.org 0 National Gallup survey (March 27, 2012)
  • 7.
  • 9. DEM GOP OUTLOOK Partisan 190 242 +24 Margin Breakdown (+3 Vacancies) Seats up in 2012 435 218 is magic # TOSS UP 10 14 TOSS UP LEAN D 8 3 LEAN R LEAN R 4 15 LEAN D LIKELY D 13 25 LIKELY R SOLID D 153 181 SOLID R Source: Cook Political Report, March 8, 2012 U.S. HOUSE: 2012 ELECTION CYCLE
  • 10.
  • 11. DEM GOP OUTLOOK Partisan 51 + 2 Is 47 Breakdown 33 Seats up in 2012 23 10 TOSS UP 7 3 TOSS UP LEAN D 3 0 LEAN R LEAN R 1 0 LEAN D LIKELY D 4 2 LIKELY R SOLID D 8 5 SOLID R Source: Cook Political Report, March 1, 2012 U.S. SENATE: 2012 ELECTION CYCLE
  • 12. U.S. Senate: 2012 Election Cycle Democratic Races – Toss Up GOP Races – Toss Up Hawaii Open (Akaka) Brown (MA) McCaskill (MO) Heller (NV) Nebraska Open (Nelson) Maine Open (Snowe) New Mexico Open (Bingaman) Tester (MT) North Dakota Open (Conrad) Virginia Open (Webb) Wisconsin Open (Kohl) NADO.org
  • 14. USA Today May 5, 2012 12 KEY PRESIDENTIAL BATTLEGROUND STATES
  • 15. In the first USA Today/Gallup swing-state poll conducted since Mitt Romney became the presumptive Republican nominee, Romney and President Barack Obama are nearly tied -- 45% vs. 47%, respectively -- among registered voters in the 12 battleground states that make up the poll. USA Today May 5, 2012 12 KEY PRESIDENTIAL BATTLEGROUND STATES
  • 16. Politico: May 16, 2012 Republican Candidates Delegate Tally
  • 17. Presidential Campaign President Obama Base remains strong BUT Major anxiety with job market and economy, especially GAS prices Independents are NADO.org key, especially women
  • 18. Presidential Benchmark: What Direction Is the Nation Headed? NADO.org
  • 19. Economic Concerns Continue to Be Cited as Most Important Problem What is the most important problem facing our country today? NADO.org Gallup: Jan. 2012
  • 20. The Obama Advantage Standing President No Primary Fundraising Capability NADO.org
  • 22.
  • 23. Key Take Away Points  The focus by the American public on government spending is unprecedented  Voters are angrier now than 2006, 2008 or 2010. It will be another very turbulent election  A majority of Americans believe the country has been on the wrong track– with no end in sight  Simply based on his ability to fundraise, President Obama will be a formidable candidate no matter the state of the economy NADO.org
  • 24. Context for Federal Policy and Budget Debates
  • 25. Federal Budget Picture Debt Ceiling: Hit $15 Trillion in November 2011 Fed govt. borrows 40 cents of every dollar spent now Today, national debt is now 69% of GDP vs. 2008 was 40% CBO estimates rise to 109% by 2023 if no change – the record set in WWII NADO.org
  • 26.
  • 27. Outlays FY2000 FY2005 FY2010 FY2012 FY00-12 Estimate Change Appropriations Defense / Security $278B $443B $815B $881B + $603B Non-Security $339B $487B $491B $462B + $123B Mandatory Medicare $199B $290B $446B $468B + $269B Medicaid $117B $194B $273B $269B + $152B Other Mandatory $123B $337B $644B $598B +$ 475B Debt Interest $220B $178B $196B $240B + $20B TOTAL OUTLAYS $1.790T $2.479T $3.456T $3.729T +$ 1.939T FEDERAL BUDGET TRENDS FY2000-2012
  • 28. ABSENT REFORMS, DEBT IS SET TO SKYROCKET IN THE COMING DECADES Sources: Congressional Budget Office (January 2012) and Bipartisan Policy
  • 29. August 1 Budget Control Act of 2011 (S. 365)
  • 30. Debt Deal: Overview of Major Components Debt Ceiling Increase With Required Reductions in Deficit $2.1 to $2.4 trillion Discretionary Spending Caps $900 billion in spending reductions over 10 years Joint Select Committee on Deficit Reduction (Super Committee) Goal: Find $1.5 trillion in additional deficit reduction Or else…automatic sequestration NADO.org
  • 31.
  • 32. UNDERSTANDING THE BREAKDOWN OF SEQUESTRATION LEVELS Distribute remaining Evenly split each Total “triggered” cut $984 billion year’s cut $1.2 trillion evenly among fiscal between defense and years non-defense 2013 to 2021 accounts Subtract 18 percent in debt $109.3 billion service savings Defense Non-defense per year $54.7 billion $54.7 billion
  • 34. FY13 FEDERAL APPROPRIATIONS
  • 35. FY2013 Federal Budget & Appropriations Senate FY13 discretionary spending level: $1.043 trillion House FY13 discretionary spending level: $1.028 trillion NADO.org
  • 36. EDA: Budget Background President’s FY2013 request: $219M  $38M below FY12 enacted level ($257.5M) = 15% cut  $64.43M below FY11 enacted level ($283.43M) = 23% cut  $74M below FY10 enacted level ($293M) = 25% cut EDA’s final FY12 funding total of $457.5M included $200M for disaster assistance and $257.5M for programs and operations Since FY2001, funding for EDA’s core economic development assistance programs has decreased by approximately 50 percent! NADO.org
  • 37. Economic Development Administration FY2013 FY2013 Budget figures are in millions. Final FY2012 President’s FY2013 House Senate Request Economic Development Administration 457.50 * 219.71 237.71 219.00 Planning Grants 29.00 27.00 29.00 27.00 Public Works 111.64 65.50 62.20 85.50 Economic Adjustment Grants 50.06 65.20 56.50 40.20 Technical Assistance 12.00 12.00 12.00 12.00 Research & Evaluation 1.50 1.50 1.50 1.50 Trade Adjustment & Assistance 15.80 15.80 15.80 15.80 NADO.org Regional Innovation Program 0.00 25.00 25.00 0.00 Disaster Assistance 200.00 * 0.00 0.00 0.00
  • 38. Economic Development Administration Amendments to H.R. 5326 House FY13 Commerce-Justice-Science Appropriations Bill Michaud Amendment: to restore a $38 million cut to EDA with a $38 million funding offset from the Census Bureau’s periodic census account  The Michaud amendment was defeated by a 190-218 vote Pompeo Amendment: to eliminate EDA  The Pompeo amendment was defeated by a bipartisan vote of 129-279 Scalise Amendment: to reduce the salaries and expense line items for three U.S. Department of Commerce accounts, including EDA’s operations account by $7.5 million  The Scalise amendment was defeated by a vote of 174-233 NADO.org
  • 39. HUD CDBG Program FY12 Agency Program FY10 FY11 FY12 President’s Plan Community Development Block HUD Grants (CDBG), $3.99 B $3.34 B $2.94 B $2.94 B Entitlement Program  FY13 Senate Draft T-HUD Appropriations Bill= $3.1 B  FY13 House Draft T-HUD Appropriations Bill =$3.34 B NADO.org
  • 41. NADO Priorities for Transportation Reauthorization:  Strengthen role of rural local officials in the statewide transportation planning and investment process by establishing and giving federal recognition to RTPOs for areas outside the boundaries of MPOs  MPO Threshold Issue  More than 200 of the nation's 382 MPO's would lose their MPO designation if threshold was changed NADO.org
  • 42. Transportation: Senate Senate’ s Moving Ahead for Progress in the 21st Century (S. 1813) ▪ Passed floor on March 14 as two-year, $109 billion bill (FY2012-2013) ▪ Maintains existing funding levels, adjusted for inflation RTPO Language: ▪ Establishes rural local official consultation process “separate and discrete” from the general public MPO Issues: ▪ Sets threshold for new MPOs at 200,000 ▪ Existing MPOs 50,000 - 200,000 - new multi-step process to maintain MPO status NADO.org
  • 43. Transportation: House House reauthorization bill: American Energy and Infrastructure Jobs Act of 2012 (H.R. 7) Five-year, $262.9 billion bill House passed 90-day extension and authorized the Keystone XL pipeline on May 18 RTPO Language: Includes NADO-championed language State DOTs may establish RTPOs for areas outside of MPOs Elevates local official role from “consultation” to “cooperation” for long-range transportation plan, STIP, and project selection If state does not recognize RTPOs, the state shall continue to “consult” with locals MPO Issue: Sets threshold for new MPOs at 100,000 Existing MPOs 50,000- 200,000 are grandfathered NADO.org PROBLEM: When MPO and state disagree on project of state-wide significance, Governor can override MPO
  • 44. Transportation: Key Players 47 House and Senate Conferees have been named  14 Senate Conferees  8 Democrats, 6 Republicans  ½ of Senate conferees negotiated 2005 SAFETEA-LU  33 House Conferees  20 Republicans, 13 Democrats  8 of the 20 Republicans are Freshmen (7 from the T&I Committee)  14 of the 33 House conferees negotiated 2005 SAFETEA-LU NADO.org
  • 45.
  • 46. 2012 NADO Annual Training Conference October 13 – 16 | The Mirage | Las Vegas, NV
  • 47. National Association of Development Organizations (NADO) and the NADO Research Foundation 400 North Capitol Street, NW | Suite 390 | Washington, DC 20001 NADO.org | Ruraltransportation.org | Knowyourregion.org Regionalcouncilguide.org 202.624.7806 | Info@nado.org Regional Strategies. Solutions. Partnerships.