Federal funding is confusing even when Congress runs on schedule and everyone sings "kumbaya!" What we are witnessing right now appears closer to chaos than calm.

A Brief Civics Lesson

The federal fiscal year runs from October 1 to September 30.  Congress must set spending for federal programs by September 30, or the government cannot continue to operate.  The current fiscal year – FY 2011 – began on October 1, 2010, and Congress has yet to establish appropriations, i.e., funding levels, for any federal agencies.  This seems to have happened with more regularity over the last few years.  Therefore, in order for the government to keep running and providing services, Congress must pass a bill known as a continuing resolution (CR).

Congress has the power to set funding at any level it wishes on a CR.  Most often, continuing resolutions simply keep funding at current levels until Congress can pass the 12 appropriations bills.  These 12 bills provide money for all discretionary government programs, programs funded annually by Congress as opposed to mandatory programs for which funding continues with or without congressional action.  Congress also may pass a CR that imposes an across-the-board cut on all discretionary programs or may decide to increase or decrease funding for various programs, all temporarily until Congress sets permanent funding levels for that fiscal year.

The Current Situation

The bottom line is this: half of FY 2011 is over, and Congress has passed four continuing resolutions!  CR #4 is set to expire on March 4, so another CR must be passed.  In fact, the House already has passed CR #5, and that's where the problem arises:  In the wee hours of Saturday, February 19, the House of Representatives passed another continuing resolution that would cut $61 billion from discretionary programs. 

Discretionary programs include everything from education, health, and social services to environment, transportation, and defense.  Other programs have mandatory funding streams – Social Security, Medicare, Medicaid, food stamps, and parts of other programs such as child care assistance and student loans.  Mandatory funding is about two-thirds of the total federal budget. That means only one-third, or about 38%, of the federal budget is discretionary – and 22% of the 38% is defense and national security.  That leaves about 16% of the entire federal budget for programs and services that affect citizens every day.

All that explanation is to let readers know the federal deficit cannot be solved by decimating funding for that small discretionary portion of the budget. This is especially true if defense and homeland security are viewed as basically untouchable.

What Happens Now

The House CR is a draconian bill that eliminates many programs and cuts deeply into others.  Now the Senate either must pass the House bill or propose its own version and be reconciled with the House-passed bill before a final bill can be sent to the President. 

It is highly unlikely the Senate will agree to the House bill or that any bill will be resolved by March 4.  In addition, the President has issued a veto threat should a bill that looks like the one passed by the House be sent to him.

One of two scenarios will occur on by March 4. Either both House and Senate will agree to continue funding at the current levels, or the government will shut down.  In 1995, the government was shut down twice in a similar scenario, first for three days and then for 21.  The Republican majority was hammered in the press, but Speaker of the House Boehner insists they will shut the government down rather than compromise on the $61 billion in cuts.

Take Action Now!

The cuts proposed in the House bill affect all programs CCBD members care deeply about:  general and special education, mental health services, higher education, and a host of others.  CCBD members should let their Senators know the cuts in the House bill are unacceptable.  CCBD members should also call their House members and let them know the devastating impact these cuts will have on students and their families and the professionals who serve them.

We'll keep you posted as this situation unfolds!  Act now!