Congress finishes 2012 budget with cuts to local programs

The House and Senate have passed a $915 billion "omnibus" appropriations bill, finalizing program funding levels for fiscal year 2012.  President Obama is expected to sign the legislation.

This particular bll provides funding for the departments of Defense, Education, Energy, Homeland Security, Labor, Health and Human Services, Interior and the Environmental Protection Agency, among other agencies.  Earlier this fall, a $128 billion"minibus" appropriation bill was approved, providing funding for the Departments of Agriculture, Commerce, Justice, Transportation and Housing.

Spending reductions to programs of importance to local communities occur in both the omnibus and minibus bills.  As examples, the "minibus" cut the CDBG program was by $420 million to $2.9 billion. The HOME program, which assists affordable housing is funded at 40% below last year's level.  It also made cuts in several public safety programs, including Byrnes Justice Assistance Grants which will receive $370 million as compared to $424 million, and the COPS program $166 million in 2012 as compared to $257 million in 2011.

The just adopted "omnibus" reduced funding for the Drinking Water State Revolving Loan Fund by $45.6 million to $919.4 million and Brownfields program by $5 million to $95 million. On a positive note, funding for the Clean Water State Revolving Loan Fund remains at the 2011 level of $1,5 billon and a Firefighter Assistance saw a significant increase in funding.  However, just like the cuts to public safety made in the previous bill, the "omnibus" cut homeland security funding by 40%. 

Reductions in spending should come as no surprise to anyone.  It has been clear that such actions would have to be taken to address the deficit. And this is why, as these discussions continue, it remains vital for local officials to ensure their voices are heard by adopting a resolution (below) and speaking with their congressional representatives and Senators Stabenow and Levin on the need for a balanced approach to addressing the deficit and future budget decisions.   deficit reduction resolution_members_november 2011.docx (17.30 kb)

Arnold Weinfeld is Director of Strategic Initiatives and Federal Affairs for the Michigan Municipal League. He can be reached at 517-908-0304 or by e-mail.