If your head is spinning trying to figure out what issues such as sequestration, continuing budget resolutions, and future proposed budgets will have on federal funding for parks and recreation, you’re certainly not alone. The following attempts to summarize what all the recent talk (and, for a change, some action) in Washington ultimately means for our communities, including funding for parks and outdoor recreation as well as biking and walking trails and infrastructure.

On March 1, the month came in like a lion as sequestration took effect and federal agencies were given a mandate to begin making $85 billion in funding cuts. The Office of Management and Budget (OMB) reported that the sequester translates into nine percent cuts for the remaining six months of FY 2013, or five percent overall for the entire fiscal year for each federal agency.

The federal government had been operating under a short-term, six-month spending law, known as a continuing resolution, or CR, that kept the government operating at existing FY 2012 levels until March 27, 2013. With the mandatory spending cuts now enacted, Congress turned its attention to completing an FY 2013 final appropriations bill that would accommodate spending for the second half of FY 2013 and the sequestration cuts. In order to avoid a government shutdown, Congress needed to either finalize the FY 2013 spending bills or extend the current CR. This type of situation has produced much turmoil and threatened a government shutdown in recent fiscal years. Fortunately, this time there were no political games threatening a government shutdown, and the House and Senate quickly passed an FY 2013 appropriations bill (H.R. 933) that will keep the government running through the fiscal year, which ends on September 30, 2013, and includes the $85 billion in required sequestration cuts. The CR maintains the spending caps in place following sequestration, roughly $984 billion for discretionary spending, down from the $1.043 trillion approved for FY 2012. The bill also includes additional across-the-board cuts, ranging from 0.1 percent to 2.5 percent for particular departments to avoid a second round of sequestration set to trigger an additional $7.8 billion in automatic spending cuts on March 27, had Congress not finalized the FY 2013 appropriations bills.

Final FY 2013 Funding and Sequestration Impacts on Parks and Recreation
The OMB said that because of sequestration, the National Park Service will have $218 million less to spend in FY 2013 than in FY 2012. The Land and Water Conservation Fund (LWCF) State Assistance Program was funded at the final FY 2012 level of approximately $42 million but will now be subject to sequestration. Exactly how much of a hit the LWCF State Assistance account ultimately takes, including how the mandated cuts are divided between the grant program and administration, has not yet been reported by the Park Service. We do know that the FY 2013 State Assistance grants have yet to be allocated to the states, so the overall impact of the cuts will be felt up front and only once.

The CR maintains spending for highway programs as authorized in MAP-21, which utilize monies from the Highway Trust Fund and are protected from cuts. Therefore, programs such as the Recreational Trails Program ($85 million) and other programs critical to walking and biking infrastructure, such as “Transportation Alternatives,” will continue as normal.

However, other programs now subject to cuts (of between five and eight percent for this fiscal year) include: Community Development Block Grants, CDC Community Transformation Grants, and other programs that fund the development of parks, trails, and active transportation networks. The cuts from sequestration will start to be felt in local communities in April once federal agencies have reduced their staffing and reported their overall spending plans.

Plans for FY 2014
Just prior to departing for the spring holiday break, the House and Senate approved radically different FY 2014 Congressional budgets that will guide spending for the fiscal year beginning October 1. For park and recreation purposes, the most important function of the Congressional budget is to set an overall domestic spending cap that appropriators then use to assign funding ceilings for individual spending bills. They are non-binding and best viewed as blueprints or guides that indicate the funding priorities for the House and Senate.

Unfortunately, the House and Senate visions for federal spending could not be more different. The Senate plan calls for $975 billion in new revenue (taxes) and an equal amount of spending cuts. The plan also includes $100 billion in short-term stimulus spending aimed at jobs and infrastructure.

Of note, the Senate’s FY 2014 budget recommends full funding for LWCF at $900 million per year.

The House-approved budget blueprint seeks to repeal the 2010 health care law and cuts to Medicare, and it includes no new revenues. Both chambers approved their budgets by very narrow, primarily party-line votes. The dramatic difference between the two ensures that there will be no compromise between the House and Senate. However, the budgets do provide a clear idea of Congress’s priorities compared to that of the Administration.

The final part of this trio, the President, submitted his FY 2014 budget request to Congress on April 10—65 days past the statutory deadline for the budget submittal. This year, the Obama administration delayed releasing a fiscal 2014 budget request because it claimed it was tied up with completing the fiscal 2013 appropriations legislation, including addressing the impacts of sequestration.

One major positive that comes out of the House, Senate, and White House recommending separate budget plans is that it serves as the starting point on negotiations over a longer-term budget deal. This will likely be needed in advance of a further extension of the government’s overall debt limit, or ceiling, later this year and will be required to avoid another harsh round of automatic spending cuts in FY 2014.

Both the House and Senate Appropriations Committees have indicated they plan a full-court press, all in an effort to develop and approve their respective appropriations bills for FY 2014. Committee hearings have already been held regarding the President’s budget submission with the intention of individual bills being ready for consideration prior to July 4. House and Senate Appropriations Committee leaders have said they intend to complete action on all 12 annual appropriations bills (including those covering the Department of the Interior, Transportation, Housing and Urban Development, and Health and Human Services) before the beginning of the new fiscal year. Time will tell if the appropriators’ optimism is misplaced.

NRPA Public Policy continues to monitor federal actions related to spending levels and will continue to update you as the process continues, including guidance on how and when to contact your elected leaders on Capitol Hill urging their continued support for programs like the LWCF State Assistance Program as well as those which promote trails and active transportation. Thank you for your efforts and ongoing support.

David Tyahla is NRPA’s Senior Government Affairs Manager.