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October 24, 2016 - Washington Report

By Leah Wavrunek posted 10-24-2016 02:42 PM

  

This Week on the Hill

The House and Senate are adjourned until the week of November 14.

 

Social Security Announces 0.3 Percent COLA: Implications for Medicaid Budgets

The Social Security Administration (SSA) announced a 0.3 percent Social Security cost-of-living adjustment (COLA) in calendar year 2017 that triggers Medicare’s hold-harmless provision for Part B premiums. This means that Medicare Part B premiums will be limited to the increase in Social Security for beneficiaries who have their Medicare Part B premiums deducted from their monthly Social Security benefits. The remaining beneficiaries, including dual Medicare-Medicaid eligible individuals, will likely see significant increases in their premiums in order to maintain a contingency reserve and other asset requirements in Medicare as required by law. The Medicare Trustees had been projecting a 0.2 percent COLA which was estimated to result in an increase of 22 percent for Part B premiums for those not held harmless, including the dual-eligibles. Federal Funds Information for States (FFIS) estimated an increase in state costs of $1.1 billion in calendar year 2017, based on the 22 percent increase in Medicare Part B premiums for the dual eligibles. Congressional action would be needed to prevent a substantial increase from occurring. 

 

Labor Department Awards $50.5 Million to States for Apprenticeship Programs

The U.S. Department of Labor announced on Friday it has awarded $50.5 million in grants to help states develop and implement comprehensive strategies to support apprenticeship expansion through the Apprenticeship USA initiative. The grants are also intended to engage industry and workforce intermediaries, employers, and other partners to expand and market apprenticeship to new sectors and underserved populations; enhance state capacity to conduct outreach and work with employers to start new programs; and expand and diversify participation in apprenticeship through state innovations, incentives, and system reforms. Grants were awarded to 37 states and territories with awards ranging from $700,000 to $2,700,000. A summary of grant recipients can be found here, a fact sheet can be found here and frequently asked questions can be found here.

 

Education Releases Guidance on Early Education, Title IV Funding

Last week the U.S. Department of Education (ED) released non-regulatory guidance to assist states and school districts with implementing the Elementary and Secondary Education Act (ESEA), as amended by the Every Student Succeeds Act (ESSA). The first guidance relates to using funds allotted under ESEA to support preschool and other early education programs. The guidance is “intended to remind state and local decision-makers about the importance of investing in early learning, highlight the opportunities available under the law to strengthen early education, and provide examples of how states and local communities may support young children’s success in school.” The second guidance relates to the newly authorized Student Support and Academic Enrichment program and includes key information on the provisions of the new program, including a discussion of the allowable uses of the funds, role of the state educational agency, fiscal responsibilities, and the local application requirements. The program is intended to increase the capacity of state educational agencies, local educational agencies and local communities to provide all students with access to a well-rounded education, improve school conditions for learning, and improve the use of technology to improve the academic achievement and digital literacy of all students. Additional information on ESSA can be found here.

 

DOT Issues Guidance on State Freight Plans

The U.S. Department of Transportation recently published guidance on state freight plans and State Freight Advisory Committees, as part of the Fixing America’s Surface Transportation Act (FAST) implementation. The FAST Act included a provision that requires each state that received funding under the National Highway Freight Program to develop a state freight plan that provides a comprehensive plan for the immediate and long-range planning activities and investments of the state. The guidance provides the minimum required elements that state freight plans must meet and suggests recommended, but optional, elements that states may include in their plans. The guidance also includes suggestions for establishing State Freight Advisory Committees to assist with state planning. States must produce FAST Act-compliant freight plans, with ten required elements, by December 4, 2017 in order to obligate National Highway Freight Program funds.

 

Administration Releases Additional Zika Spending Details

Last week the administration released additional details on how agencies will allocate the $1.1 billion approved in last month’s continuing resolution to fight the Zika virus. The Department of Health and Human Services had received $933 million under the bill, including $394 million for the Centers for Disease Control and Prevention (CDC), $152 million for the National Institutes of Health and $387 million to the Public Health and Social Services Emergency Fund. The CDC announced the availability of approximately $70 million in supplemental funding to states, cities and territories through the center’s Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Cooperative Agreement. All ELC applicants can request funds with the distribution determined based on factors such as Zika disease burden, current laboratory and mosquito surveillance and control capacity, the presence of the Zika virus vector, and local Zika virus transmission. The deadline for applications is November 20. CDC also announced that an additional $25 million in Public Health Preparedness and Response funds are available to current Zika awardees to support public health preparedness planning and operational readiness; applications are due November 11. CDC also increased by $44.25 million the Public Health Emergency Preparedness (PHEP) cooperative agreements for all-hazards preparedness efforts in 2016 and 2017. The funds will go to a total of 62 jurisdictions, including states, cities and territories. This increase restores PHEP funds previously redirected from states and other jurisdictions in March to support CDC’s Zika response.

 

FEMA Updates Grant Thresholds and Formula Factors

The Federal Emergency Management Agency (FEMA) recently published several notices in the Federal Register alerting grantees to new limits and thresholds under several fiscal year 2016 grants. The notices relate to the following programs: an increase to the countywide per capita impact indicator under the Public Assistance program for disasters declared on or after October 1, 2016; an adjustment to the maximum amount for assistance under the Individuals and Households Program for emergencies and major disasters declared on or after October 1, 2016; an increase to the statewide per capita impact indicator under the Public Assistance program for disasters declared on or after October 1, 2016; an increase to the minimum Project Worksheet Amount under the Public Assistance program for disasters and emergencies declared on or after October 1, 2016; and an adjustment to the threshold for Small Project subgrants made to state, tribal, and local governments and private nonprofit facilities for disasters declared on or after October 1, 2016. Adjustments and updates are intended to reflect changes in the Consumer Price Index for All Urban Consumers published by the Department of Labor and are required by the Stafford Disaster Relief and Emergency Assistance Act, as amended by the Sandy Recovery Improvement Act (P.L. 113-2).

 

Recently Released Reports

Lessons from Public-Private Partnerships, Bipartisan Policy Center

State Use of Express Lane Eligibility for Medicaid and CHIP Enrollment, U.S. Department of Health and Human Services Office of Inspector General

Child Care: Information on Integrating Early Care and Education Funding, U.S. Government Accountability Office

50-State Comparison: Statewide Longitudinal Data Systems, Education Commission of the States

State Budget Sources: An Annotated Guide to State Budgets, Financial Reports, and Fiscal Analyses, The Volcker Alliance

Implementation Guide No. 201X-X, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, Governmental Accounting Standards Board

 

Economic News

 

Unemployment Rates Stable in 42 States in September

New data from the Bureau of Labor Statistics shows that most regional and state unemployment rates saw little change in August; 42 states and the District of Columbia had stable unemployment rates, 1 state had higher rates and 7 states had lower rates. Compared to one year earlier, 40 states and the District of Columbia had no notable net change, while 4 states had increases and 6 states had notable unemployment rate decreases. The national jobless rate was 5.0 percent, which is little changed from that of both August 2016 and September 2015. Nonfarm payroll employment increased in 14 states in September, decreased in 3 states and was essentially unchanged in 33 states and the District of Columbia. In September, the only region with an unemployment rate significantly different from the U.S. rate of 5.0 percent was the Midwest at 4.6 percent. Compared to one month earlier, only one region had a statistically significant unemployment rate change, the South at +0.1 percentage point. Also, significant over-the-year rate decreases occurred in two regions: the South (-0.3 percentage point) and West (-0.4 percentage point).

 

Consumer Price Index Increased in September as Real Hourly Earnings Declined

The U.S. Bureau of Labor Statistics released new data on the Consumer Price Index for All Urban Consumers (CPI-U) for September 2016, showing the CPI-U increased 0.3 percent on a seasonally adjusted basis. Over the last twelve months, the all items index increased 1.5 percent before seasonal adjustment. Increases in the shelter and gasoline indexes were the main cause of the rise in the all items index. The gasoline index rose 5.8 percent and the shelter index increased 0.4 percent. The energy index increased 2.9 percent while the food index remained unchanged for the third consecutive month. The index for all items less food and energy rose 0.1 percent in September after a 0.3 percent increase in August. The all items index rose 1.5 percent for the 12 months ending in September while the index for all items less food and energy rose 2.2 percent. Meanwhile, real average hourly earnings for all employees decreased 0.1 percent from August to September, seasonally adjusted. This result stems from a 0.2 percent increase in average hourly earnings being more than offset by a 0.3 percent increase in the CPI-U.