County of Santa Clara
Office of the County Executive
85811
DATE:
April 5, 2017
TO:
Federal Affairs Advocacy Task Force
FROM:
Steve Preminger, Special Assistant to the County Executive
Danielle Christian, Legislative Manager
SUBJECT: President's Proposed Federal Budget for Fiscal Year 2018
RECOMMENDED ACTION
Consider recommendations relating to Fiscal Year (FY) 2017 Federal Budget and FY 2018
Federal Budget Blueprint.
Possible action:
a. Receive preliminary report from Office of the County Executive and Prime Policy
Group and forward report to the Board of Supervisors through the Office of
Intergovernmental Relations.
b. Direct Administration and Board of Supervisors' Management Audit Division to provide
a final report to the Task Force on May 11, 2017 relating to the FY 2018 Federal Budget
Blueprint.
REASONS FOR RECOMMENDATION
On March 16, President Trump released a general outline of his administration’s budget
priorities for Fiscal Year 2018. Newly elected presidents typically submit initial proposals
with less details than a normal budget request – called a “skinny” budget. The President’s
proposal, titled “America First – A Budget Blueprint to Make America Great Again,” does
not include the tax revenue, mandatory spending or economic growth forecasts that make up
a normal presidential budget request. A more comprehensive budget will be released in May.
In the meantime, the skinny budget outlines the President’s discretionary spending priorities
so Congress can begin the annual appropriations process.
The $1.1 trillion spending plan proposes historically deep cuts across nearly every federal
agency. It recommends $54 billion in spending reductions to non-defense discretionary
programs in order to pay for a commensurate increase in defense-related funding. In total, the
President recommends eliminating funding for 19 independent federal agencies and 61
federal programs. A list of these agencies and programs is attached (Attachment A).
Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian
County Executive: Jeffrey V. Smith
Page 1 of 10
This report provides information regarding the proposed funding level for each federal
agency, how it compares to the 2017 annualized Continuing Resolution level, and
information on proposed changes to programs of interest to the County. Information on
program changes that do not have a direct fiscal effect on the County, but could potentially
impact county residents and/or other local government agencies, is also included.
The spending plan’s impact to the County General Fund is unknown since the President’s
budget lacks specificity in many areas. However, where the amount of funding currently
received from some programs proposed for elimination is known, it is indicated in this
document.
The following chart outlines the percent change in agency budgets from the 2017 annualized
Continuing Resolution levels. As indicated, the largest percent reduction is to the
Environmental Protection Agency at 31 percent; the smallest is 1 percent to National
Aeronautics and Space Administration. The budget plan recommends higher funding levels
for three agencies: Veterans Administration, Homeland Security, and Defense.
Department of Health and Human Services
Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian
County Executive: Jeffrey V. Smith
Agenda Date: April 5, 2017
Page 2 of 10
The Department of Health and Human Services (HHS) is funded at $69 billion, a $15.1
billion reduction (18 percent) from the 2017 annualized CR level.
The budget proposal does not address proposed policy changes or possible cuts to federal
mandatory spending programs such as Medicaid and the Temporary Assistance for Needy
Families (TANF) program. However, the document states that the budget “supports efficient
operations for Medicare, Medicaid, and the Children’s Health Insurance Program and focuses
spending on the highest priority activities necessary to effectively operate these programs.”
HHS programs targeted for elimination in the President’s budget include the $715
Community Services Block Grant (CSBG) and the $3.1 billion Low Income Home Energy
Assistance Program (LIHEP). CSBG supports services and activities for individuals with low
incomes to help alleviate the causes and conditions of poverty
in community. States receive funds according to a statutory formula and it turn, fund a
network of local entities with 90 percent of their CSBG grant award. Local entities that
receive funds through states include local governments, migrant and seasonal farm worker
organizations, and Community Action Agencies (CAAs). The LIHEP helps keep families
safe and healthy through initiatives that provide assistance for energy costs such as home
energy bills and weatherization/energy-related minor home repairs.
Funding in the amount of $403 million in health professions and nurse training programs is
eliminated.
The budget does include some funding increases in HHS. This includes $500 million more
than the FY 2016 enacted levels to expand opioid misuse prevention efforts and to increase
access to treatment and recovery services to help those misusing opioids. A new $500 million
block grant to states to address public health needs is also provided in the budget. The budget
document makes reference to reforms to key public health, emergency preparedness, and
prevention programs. However, it does not provide sufficient detail to determine the fate of
the nearly $1 billion Prevention and Public Health Fund (PPHF), which was slated for
elimination under the GOP’s Affordable Care Act replacement bill. The PPHF was
established by the Affordable Care Act to provide expanded and sustained national
investments in prevention and public health, to improve health outcomes, and to enhance
health care quality. The County receives funds from the PPHF, but since the money goes
through the State and is pooled with other sources before being disseminated to counties in
various ways, an exact amount is not available.
The National Institutes of Health (NIH) spending would be reduced by $5.8 billion along
with a major restructuring of NIH’s Institutes and Centers to help focus resources on the
highest priority research and training activities. This includes eliminating the Fogarty
International Center, consolidating the Agency for Healthcare Research and Quality within
NIH, and other unspecified consolidations and structural changes across NIH organizations
and activities.
Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian
County Executive: Jeffrey V. Smith
Agenda Date: April 5, 2017
Page 3 of 10
Department of Housing and Urban Development
The budget request for the Department of Housing and Urban Development is $40.7 billion,
a $6.2 billion (13 percent) decrease.
Over $35 billion is provided in the budget for HUD’s rental assistance program. However,
other important housing programs are proposed for elimination.
Funding for the Community Development Block Grant (CDBG) and HOME Investment
Partnerships program is eliminated. CDBG is currently funded at $3 billion and HOME at
$950 million. The CDBG program provides grants throughout the nation that leverage private
and non-profit investment to fund community, infrastructure, and economic development
projects. The HOME program provides resources to counties for the creation of affordable
housing opportunities for low-income families.
The President’s budget would support VA programs assisting homeless and at-risk veterans
and their families and programs to ease veterans’ transition into civilian life through
education, job training, and other services. Specific projects were not mentioned in the
budget.
Impact to the County: The County of Santa Clara administers CDBG on behalf of the
unincorporated areas of Santa Clara County and the Cities of Campbell, Los Altos, Los Altos
Hills, Los Gatos, Monte Sereno, Morgan Hill, and Saratoga, also known as the Urban County
Program. The FY 18 estimated CDBG funding is $1 million. The HOME Program is
administered on behalf of the Urban County Program and the Cities of Cupertino, Gilroy, and
Palo Alto. The FY 18 estimated HOME funding amount is $976,000. Additionally, Public
Service CDBG funding is estimated to be $250,000 for FY 18.
In addition to the CDBG and HOME funding administered by the County, in FY 16, cities
within Santa Clara County received a combined $12,450,773 in CDBG and $3,386,115 in
HOME funding.
Department of Justice
The President is requesting $1.1 billion for the Department of Justice. This reflects a 4
percent decrease from the 2017 annualized CR level.
The budget plan proposes approximately $700 million in cuts to “unnecessary spending on
outdated programs that either have met their goal or have exceeded their usefulness.” Part of
this cut includes $210 million for the State Criminal Alien Assistance Program (SCAAP).
SCAAP reimburses states and localities for their costs of incarcerating undocumented
criminal aliens for violations of state or local law.
Impact to the County: In County Fiscal Year 2017, approximately $655,000 in SCAAP
revenue is budgeted in the County General Fund; the year to date amount received is
Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian
County Executive: Jeffrey V. Smith
Agenda Date: April 5, 2017
Page 4 of 10
approximately $818,000. Due to the uncertainty of this revenue source, the Office of Budget
and Analysis is determining the amount to assume for next fiscal year.
Apart from the budget process, DoJ Secretary Sessions has announced the Department’s
intention to follow through on an executive order to withhold DoJ grant funding for
sanctuary cities. Sanctuary cities across the country are challenging the executive order in
court.
Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian
County Executive: Jeffrey V. Smith
Agenda Date: April 5, 2017
Page 5 of 10
Department of Transportation
The Department of Transportation is funded at $16.2 billion, reflecting a $2.4 billion
reduction (13 percent) from 2017 annualized CR levels.
The TIGER discretionary grant program is eliminated in the budget. The TIGER Program
awards grants to projects that are generally eligible for funding under existing surface
transportation formula programs. TIGER is currently funded at $499 million. In the past, the
County Roads and Airports Department submitted three applications for TIGER funding but
did not receive funds from the program.
The budget proposes limiting funding for the Federal Transit Administration’s Capital
Investment Program, known as New Starts, to projects with existing Full Funding Grant
Agreements (FFGA) only. The budget would honor previous commitments that already
contain an FFGA; future projects would not receive federal assistance.
Transportation Security Administration (TSA) grants to state and local jurisdictions are
proposed to be eliminated.
The President’s budget would initiate a multi-year reauthorization to shift the air traffic
control function of the Federal Aviation Administration to an independent, non-governmental
organization.
Impact to the County: The elimination of funds for new FFGAs imperils federal funding for
the CalTain electrification project. Transportation Secretary Chao should have signed the
FFGA for CalTrain by March, but cited budgetary uncertainties and congressional concerns
about the project as reasons for deferring a decision.
Department of Energy
The Department of Energy is funded at $28 billion, a 6 percent reduction from 2017
annualized CR level, and the remaining money is significantly redistributed. The greatest
shift is an increase of the National Nuclear Security Administration’s budget by 11.3 percent,
while the rest of the Energy Department’s programs would be cut by 17.9 percent.
The budget eliminates the Weatherization Assistance Program and the State Energy Program.
The Weatherization Assistance Program provides grants to states, territories, and some Indian
tribes to improve the emergency efficiency of the homes of low-income families. These
governments contract with local governments and nonprofit agencies to provide
weatherization services to those in need.
The State Energy Program provides funding and technical assistance to state and territory
energy offices to help them advance their clean energy economy while contributing to
national energy goals.
Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian
County Executive: Jeffrey V. Smith
Agenda Date: April 5, 2017
Page 6 of 10
Environmental Protection Agency
The President’s budget requests $5.7 billion for the U.S. Environmental Protection Agency
(EPA), a $2.6 billion reduction (31 percent) from the 2017 annualized CR level.
The budget would increase water and wastewater infrastructure funding. The Clean Water
and Drinking Water State Revolving Fund programs is proposed to be funded at $2.3 billion,
a $4 million increase. Additionally, the funding provided for the Water Infrastructure Finance
and Innovation Act (WIFIA) program remains level at $20 million.
More than 50 EPA programs are recommended for elimination for a savings of $347 million.
The programs include Energy Star, Targeted Air Shed Grants, the Endocrine Disruptor
Screening Program, and infrastructure assistance for Alaska Native villages and the Mexico
Border.
EPA categorical grant funds offered to state and local governments are proposed to be
decreased by $484 million. Specific programs were not detailed in the budget plan, but grant
programs such as the Clean Water Act’s Section 319 Nonpoint Source grant program, the
State and Local Air Quality Management program, the Leaking Underground Storage Tank
program, and the Beaches Protection and Brownfields program could be affected.
Also, all climate change related programs are proposed for elimination such as the Clean
Power Plan, international climate change programs, climate change research and partnership
programs, and related efforts. The elimination of these programs results in savings of over
$100 million.
Department of Agriculture
The President’s budget plan requests $17.9 billion for the Department of Agriculture. This is
a $4.7 billion (21 percent) decrease from the 2017 annualized Continuing Resolution (CR)
level.
The budget outline does not address any changes to the Supplemental Nutrition Assistance
Program (SNAP), which provides food stamps and is an entitlement program. The budget
does propose $6.2 billion to fully fund the Special Supplemental Nutrition Program for
Women, Infants and Children (WIC). This program provides food and nutrition education for
low-income pregnant mothers, infants, and children.
The budget eliminates the Rural Water and Wastewater Loan and Grant Program, which is
currently funded at $498 million. This program helps fund and finance critical clean water
infrastructure and provides technical assistance and planning for developing or improving
local water. Also eliminated are discretionary activities for the Rural Business and
Cooperative Service. Programs under the RBCS include the Intermediary Relending
Program; Rural Business Development Grants; Rural Economic Development Loan and
Grant Program; and the Value-Added Producer Grants.
Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian
County Executive: Jeffrey V. Smith
Agenda Date: April 5, 2017
Page 7 of 10
Department of Commerce
The budget requests funding in the amount of $7.8 billion for the Department of Commerce.
This reflects a $1.5 billion decrease (16 percent) from the 2017 annualized CR level.
The budget eliminates the Economic Development Administration (EDA), which had
previously been funded at $221 million. EDA is the only federal government agency with a
mission and programs focused exclusively on economic development and creation of private
sector jobs.
Department of Education
The Department of Education would be funded in the amount of $59 billion. This represents
a $9 billion (14 percent) reduction from 2017 annualized CR levels.
The budget eliminates the 21st Century Community Learning Centers program. This program
supports before- and after-school programs as well as summer programs. The elimination of
this program results in $1.2 billion in savings.
Department of Homeland Security
The White House is requesting $44.1 billion for the Department of Homeland Security, an
increase of $2.8 billion (7 percent), above the 2017 annualized CR level.
The President’s budget would provide $2.6 billion in tactical infrastructure and border
security technology, which includes the construction of a wall along the southern border. The
amount of $314 million is directed toward the hiring and training of 500 new Border Patrol
agents and 1,000 new Immigration and Customs Enforcement personnel. Also, $1.5 billion
would fund greater enforcement of immigration laws, including expanded detention,
transportation, and removal of illegal immigrants. The allocation of $15 million for the
nationwide implementation of E-Verify is also proposed.
Savings in the amount of $190 million is anticipated from the restructuring of user fees for
the Transportation Security Administration (TSA) and the National Flood Insurance Program
(NFIP). Additionally, several TSA programs are eliminated or reduced to achieve an $80
million savings.
The budget proposes eliminating or reducing certain FEMA grants to state and local
governments by $667 million. For FEMA preparedness grants that do not currently have a
cost matching requirement, the budget would create a 25 percent non-federal cost match.
Department of Interior
The President’s budget requests $11.6 billion for the Department of Interior, which is a $1.5
billion (12 percent) decrease from the 2017 annualized CR level.
Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian
County Executive: Jeffrey V. Smith
Agenda Date: April 5, 2017
Page 8 of 10
The budget proposal eliminates programs it categorizes as unnecessary, lower priority, or
duplicative. Programs to be eliminated include Abandoned Mine Land grants, National
Heritage Areas, and National Wildlife Refuge fund payments to local governments.
Department of Labor
The budget requests $9.6 billion for the Department of Labor, a $2.5 billion (21 percent)
decrease from the 2017 annualized CR level.
The Labor Department cuts are not specified, with the exception of a proposal to eliminate
the $434 million Senior Community Service Employment Program. The Occupational Safety
and Health Administration’s training grants are also eliminated, resulting in $11 million in
savings.
The budget proposal does not include details, but contains statements to improve Job Corps
by closing centers that do a poor job educating and preparing students for jobs. It also
includes a decrease in federal support for job training and employment services formula
grants in an unspecified amount, and shifting more responsibility for funding these services
to states, localities, and employers.
Department of the Treasury
The budget requests funding in the amount of $12.1 billion for the Department of the
Treasury. This represents a $519 million decrease (4 percent) from the 2017 annualized CR
level.
Department of Veterans Affairs
The FY18 request for the Department of Veterans Affairs is $78.9 billion, a $4.4 billion
increase (6 percent) to the 2017 annualized CR level.
The budget plan includes a $4.6 billion increase for VA health care. It also continues funding
for and expands the Veterans Choice Program, which allows veterans to seek health care
through the VA or a private provider.
Small Business Administration
As proposed, the Small Business Administration would be funded at $826.5 million, a 5
percent decrease from the 2017 annualized CR level.
The budget targets programs it classifies as redundant and eliminates initiatives such as
PRIME technical assistance grants, Regional Innovation Clusters, and Growth Accelerators
to save about $12 million.
The budget provides $45 billion in funding for loan guarantees to assist small businesses in
securing access to capital to start or expand their businesses. The budget maintains the
amount of $28 million for microloan financing and technical assistance to start-ups and small
businesses.
Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian
County Executive: Jeffrey V. Smith
Agenda Date: April 5, 2017
Page 9 of 10
The amount of $1 billion is included in the budget for disaster relief lending. The funding can
provide loans to businesses, homeowners, renters, and property owners in the event of a
declared disaster.
Department of Defense
The Department of Defense is funded at $639 billion. This reflects a $52 billion (9 percent)
increase from the 2017 annualized CR level.
National Aeronautics and Space Administration
The President’s budget requests $19.1 billion for the National Aeronautics and Space
Administration (NASA), a decrease of 1 percent and targeted increases consistent with the
President’s priorities.
Department of State, USAID and Treasury International Programs
The President’s budget proposal requests $27.1 billion for the State Department, a $10.9
billion decrease (29 percent) from the 2017 annualized CR level.
ATTACHMENTS:
 Attachment A - List of Federal Agencies and Programs Proposed to be Eliminated
(PDF)
Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian
County Executive: Jeffrey V. Smith
Agenda Date: April 5, 2017
Page 10 of 10