The recent debt ceiling extension negotiations that cost Congress dearly with respect to their public approval rating among voters actually produced good news for FY 2012 spending. Under this agreement:

• House Appropriations will receive $35 billion more than they would have under the previously passed House Republican budget.
• Labor-HHS Appropriations will receive an additional $15 billion, narrowing their cuts from $18 billion below FY 2011 levels to $3 billion below.

Potentially, this makes all the difference in the world to the outcomes of our programs. House Republican leadership would like to have all appropriations bills through the House by October 1st. Senate appropriations will start in September. Short-term continuing resolution likely.

President Obama has asked all Departments to prepare their FY 2013 budgets at 10% less than their FY 2012 budgets. Downward pressure on discretionary spending continues to grow.

David Bradley

Executive Director

National Community Action Foundation