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Budget Issues Affecting Nonprofits

Federal
State

Federal

7/28/09 Federal Budget Update. On July 24, 2009, the House passed the $160.7 billion 2010 Labor-HHS-Education Appropriations Act by a vote of 264 to153. H.R.3293 [Obey (WI-7)] provides funding for the Departments of Labor, Health and Human Services, and Education and other related agencies and programs and includes several measures to improve education, the economy, and healthcare. The bill includes over $1 billion in appropriations for the Corporation for National and Community Service, which also includes funding for our Nonprofit Capacity Building Program within the Corporation’s budget. This important bill is expected to voted on by the Senate Subcommittee on Tuesday, July 28, and be voted on by the full Committee on Thursday, 7/30/09. http://capwiz.com/pano/issues/bills/?bill=13801966&size=full

6/3/09 Preserve Funding For Nonprofit Capacity Building Program.  The national council of Nonprofits is mobilizing support for the continued enforcement of section 198S(g) of the National and Community Service Act of 1990.  This provision (from the Serve America Act) reserves $5 million in funds for capacity building for nonprofit organizations. The current administration’s proposed budget uses a “notwithstanding clause” which essentially eliminates section 198S(g), and defunds the nonprofit capacity building program for the 2010 financial year.  US Senators Chuck Grassley and Max Baucus are ardent supporters and bipartisan champions of this program. They personally proposed the provision in the Serve America Act that was signed by the President last month.  Please contact Senators Specter & Casey today.  Urge them to “not eliminate or ignore section 198S(g) of the National and Community Service Act of 1990 as amended by the Serve America Act.”  Read Senator Grassley’s Press Release.   Urge their support today.

4/20/09 Congress Is Back in Session. After a two week spring recess, Congress is back in session with a full agenda including health care, climate change, and the federal budget for the next fiscal year which begins October 1. Congress has already completed the first step of the budget process, both the House and Senate have approved their 2010 Budget Resolutions., but differences between the two versions must still be worked out in a conference committee.

4/2/09 Federal Budget Update. Both the Senate and House approved their fiscal year 2010 budget resolutions (S.Con.Res.13 / H.Con.Res.85) last week. The budget resolution is a non-binding document, setting-forth a blueprint for how Congress will move major legislation forward over the next year and how much discretionary spending will be available through the annual appropriations process. Before approving its resolution, the Senate adopted three important charitable giving amendments as follows:

• The Senate adopted the Dorgan (ND) amendment calling for Congress to extend the IRA Charitable Rollover provision and expand it to allow for life-income gifts. This is a major step towards a permanent and expanded IRA Rollover.

• Second, the Senate approved the Bennett amendment would bar changing current tax laws to pay for healthcare reform with charitable contribution deductions.

• Third, the Senate approved the Thune amendment (with 94 Senators voting in favor) to ensure that organizations providing religious, educational, cultural, healthcare, and environmental services would not be harmed by any changes to the charitable giving deduction.

The last two amendments were offered in response to President Obama’s proposal to decrease the charitable deduction for families earning over $250,000 in order to finance new health care proposals. While the charitable deduction reduction did not make it into the House or Senate budget resolutions, it could still come-up as a revenue source when appropriations and tax bills are considered.

The resolutions (with the three amendments) are headed to a conference committee where their differences will be hammered-out before a final draft is submitted to both chambers for consideration. This is expected to occur after April 21 when House returns from Spring recess. The Senate Returns on April 20.

2/25/09 Federal Omnibus Spending Bill. On February 23, 2009 the US House released a $410 billion omnibus spending bill that would fund the federal government until September 30 (the end of the fiscal year). HR 1105 would increase overall spending by 8.7% over FY 2008. This bill is necessary because the Bush administration and Congress could not agree on a budget for FY 2009, only the Departments of Defense, Homeland Security and Veterans Affairs have a current budget all other federal agencies are operating under their 2008 spending levels. The bill cuts some Bush era initiatives and increases spending for areas that Congressional Democrats feel have been under funded. The House is expected to vote on the plan later this week and the Senate next week. Read the Wall Street Journal Article http://online.wsj.com/article/SB123543557365854353.html,  and see HR 1105 at http://capwiz.com/pano/issues/bills/?bill=12767536

3/5/08 US House and Senate Budget Committees release mark-ups of the FY 2009 Budget Resolution, and debated competing proposals over the past two days. Both House and Senate proposals would extend expired tax incentives including the IRA charitable rollover, reform the estate tax, and increase domestic discretionary spending. Analysis is available from the Congressional Budget Office http://www.cbo.gov/; the US Senate Budget Committee Majority(D) http://budget.senate.gov/democratic/  and Minority(R) http://budget.senate.gov/republican/; the U.S. House Budget Committee Majority(D) http://budget.house.gov/  and Minority(R) http://budget.house.gov/republicans/.  Please note that all Committee meetings are available LIVE on the Internet Video or Audio; and the Center for Budget and Policy Priorities http://www.cbpp.org/1-15-08sfp.htm

5/24/07 The US Senate passed the Conference Report for the $2.9 trillion Federal budget plan for FY2008. The FY2008 Budget Resolution includes $23 billion in Federal spending increases over the President’s budget proposal including increases in health and education. The Resolution is expected to result in a surplus in five years by not extending many of the President expiring tax cuts. The budget Resolution is a guideline for Federal spending over the next 5 years. It serves as an outline of spending priorities for the appropriators to follow. The Budget Resolution passed in the Senate by a vote of 52-40, with 8 not voting. Senator Arlen Specter voted against the budget, while Senator Robert Casey Jr. voted for it. On May 17 the House passed the Conference Report for the FY2008 Budget by a vote of 214-209 with 10 not voting. For the text of the Conference Report from the House Rules committee go to http://www.rules.house.gov/110/text/110_sconres21cr.pdf

3/28/07  JTC issues recommendations on the President’s FY2008 budget proposal. On March 26, 2007, the Joint Committee on Taxation issued (JCS-2-07) a Description Of Revenue Provisions Contained In The President's Fiscal Year 2008 Budget Proposal. This report provides fiscal analysis of every provision in the President’s FY2008 budget proposal including comments on permanently extending certain charitable giving incentives like the IRA rollover provision and the modified enhanced charitable deduction for contributions of food inventory. For a copy of the Joint Committee on Taxation Report go to http://www.house.gov/jct/s-2-07.pdf

On Friday, March 23 the Senate Approved its version of the President’s FY2008 budget. The House takes up the budget next. For updated information about the Federal budget go to http://ombwatch.org/budget

2/21/07 President Signs Continuing Resolution for FY2007 Budget. On February 15, the President signed the $463.5 billion continuing resolution (H.J. Res. 20) Public Law No: 110-005. The Resolution passed the Senate without amendment by a vote of 81-15 on February 14, four and a half months after the legal deadline. H.J. Res. 20 provides funding for most federal agencies and programs through September 30 (the end of FY2007). The resolution will fund several government agencies at FY2006 levels, with minor adjustments. The IRS operating budget for FY2007 will be cut by $10.4 billion from FY2006 levels. According to the White House Office of Management and Budget, no earmarks previously offered for FY2007 will be honored by federal agencies unless contained in this statute. For a summary of the CR, go to http://appropriations.house.gov/pdf/CRSummary.pdf

For analysis of the CR according to House Budget Committee Republicans go to http://budget.house.gov/republicans/press/2007/cr-fy2007.pdf

For (H.J.Res. 20) go to: http://capwiz.com/pano/issues/bills/?bill=9399776

President’s FY2008 Federal Budget Proposal. On February 5, 2007, the President sent his $2.6 trillion Federal FY2008 budget to Congress. The President’s budget calls for substantial reductions in a range of domestic discretionary programs in key domestic priority areas such as healthcare, education and environment.

In order to maintain the war in Iraq and Afghanistan, and make permanent $2 trillion in tax cuts enacted in 2001 and 2003, the President has chosen to balance the budget by 2012, by reducing domestic discretionary spending. While proposed cuts are only $13 billion in FY2008, by FY2012 they swell to $34 billion or a 7.6% reduction over FY2007 funding levels adjusted for inflation or $114 billion over 5 years. For a detailed analysis of the Bush FY2008 budget go to http://www.cbpp.org/2-8-07bud.htm

For a comprehensive analysis of the President’s budget by the House Budget Committee staff, visit: http://budget.house.gov/analyses/07CBO_baseline_report_1_24.pdf

For an overview of the Federal budget process go to http://www.cbpp.org/3-7-03bud.htm

President’s FY2008 Budget Makes Charitable Giving Tax Incentives Permanent. In the General Explanations of the Administration’s FY 2008 Revenue Proposals. The proposals include making permanent some of the charitable giving incentives from the Pension Protection Act of 2006, that are set to expire at the end of this year. Proposals include permanently extending tax-free withdrawals from IRAs for charitable contributions (p. 28); permanently extending the enhanced charitable deduction for contributions of food inventory (p. 30); permanently extending the enhanced deduction for corporate contributions of computer equipment for educational purposes (p. 32); permanently extending increased limits on contributions of partial interests in real property for conservation purposes (p. 33); permanently extending the basis adjustment to stock of S corporations contributing appreciated property (p.35); and other provisions. For a copy of the Administration’s proposal go to http://www.treas.gov/offices/tax-policy/library/bluebk07.pdf

State  PANO's state budget coverage has been moved here.


 

See how the economy is impacting nonprofits.

Click here for our index of legislative issues.

National Council of Nonprofits releases report State Budget Crises: Ripping the Safety Net Held by Nonprofits (3/16/10)

"When Treatment Suffers, It Shows"- Pittsburgh Post Gazette article regarding state funding cuts.

PANO Legislative Action Center: This page includes links to legislation PANO is tracking, information on elected officials, government agencies, media contacts, voter registration and more.

Making Sense of PA Taxes and Spending (2009)  Are Pennsylvania’s taxes too high? Not according to a new handbook on state and local taxes released by the Pennsylvania Budget and Policy Center. Among the 50 states, Pennsylvania actually ranks 32nd in state taxes and 30th in state spending measured as a share of the economy. Using this measure, state taxes and spending have held steady for the past three decades.

Pennsylvania did less well in two other areas—tax fairness and local tax burden. The state’s tax system takes a significantly larger share of the incomes of the poorest earners than those of more affluent Pennsylvanians. Pennsylvania’s flat income tax fails to offset regressive sales and property taxes and leaves the wealthiest paying substantially less than their counterparts in surrounding states.

Pennsylvania also passes the cost of many public services onto local taxpayers, creating inequities across school districts that have resulted in higher taxes in poorer communities. On education funding alone, the Budget and Policy Center found, 46 other states contribute more toward public education than the Keystone State.

The center’s new handbook, The Common Good: What Pennsylvania’s Budget and Tax Policies Mean to You, makes the case for sustainable public investments in education, workforce development, transportation and other core services as a way to grow the state’s economy – especially as Pennsylvanians struggle with the effects of a national recession. To learn more about the new tax handbook, download or request a copy of it at  or call 717-255-7156.

 


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