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RCAC self-help housing federal funding status September 2011 update
By Stanley Keasling, RCAC chief executive officer
During the last quarter several significant actions were taken in Congress but a final resolution for next Fiscal Year, starting October 1, remains in flux. But just to review the status, here is what we know at the time of this publication.
The U.S. Department of Agriculture is expected to carry over funds of FY 2011 Section 523 funding to FY 2012. The House Agriculture Appropriations Subcommittee has recommended a funding level of $22 million and the Senate Appropriations Committee has recommend $30 million for FY 2012. Based on conversations with grantees from around the country, the demand for these funds could be as high as $42 million. Everyone funded by Section 523 will again face a challenging year, one likely to result in partial funding of applications.
The debt ceiling agreement does allow for domestic discretionary spending above the House approved budget and appropriations levels. Thus, the Senate increased the Section 523 amount. Due to the debt limit agreement, the Senate is constrained in its ability to propose a high appropriations number and then split the difference with the House. The Senate has to live within the confines of the debt limit deal.
Although Washington, DC gridlock is not beneficial to the country, it could be beneficial to Section 523 grantees. If the House and the Senate fail to agree on various FY 2012 appropriation bills, continuing resolutions (CRs) with across the board reductions could fund the government until compromises are reached. The first of which may go from October 1 to November 12. The FY 2011 Section 523 appropriation was $35 million. A CR with even a 15 percent across the board reduction on current spending would provide more money to the program than even the Senate has proposed. Stay tuned!