UPDATED: Sequestration and Advance Funded Programs

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UPDATED: This blog post was updated July 25 to reflect recent guidance from the Department clarifying the impact of the sequester on the advance-funded portions of Title I, Title II, Perkins and IDEA.

Full details are available here, and here is a brief summary: the calculation for the sequester will be applied to the advance-funded portions of FY12 and the annual appropriations for FY13. The sum of that amount, however, will be applied--in its entirety--to the funds that become available in July 2013. That means that schools will face no cuts in the 2012-13 school year due to sequestration. Check out this blog post for charts illustrating the impact of the sequester on these four programs.

This is one of the most popular questions I receive when traveling to state affiliate meetings, so here it is in a blog post:

How will sequestration impact programs that are advanced funded (such as Title I, IDEA State Grants, ESEA Title II, and Parkins State Grants)?

For those programs with advanced appropriations, here is how they will be affected by the sequester in FY 13:

  • Unobligated balances remaining on 1/2/13 from FY 12 new current year budget authority –– NOT subject to sequestration 
  • Unobligated balances from FY 12 advanced appropriations that become available on October 1, 2012 - Subject to Sequestration - they are new BA for FY 2013, even though they were enacted a year earlier.
  • FY 13 new current year budget authority – Subject to Sequestration 
  • FY 13 advanced appropriations that become available on October 1, 2013 – NOT subject to sequestration - they are new BA for FY 2014 (even though they are for program year 2013/2014), and so are not subject to 2013 sequestration. (They do count against the 2014 caps.)

Thus, using Title I as an example:

FY 12 advanced appropriations subject to a sequester = $10,841,177,000 (this amount was provided in the FY 12 omnibus appropriations bill)
FY 13 new current year appropriations = amount TBD in FY 13 bill – subject to sequester
FY 13 advanced for succeeding fiscal year = amount TBD in FY 13 bill – Not subject to sequester

Under the assumption that Title I is level funded in FY 13, the impact of the sequester then will be the same % cut overall as for other programs. It won’t be subject to a deeper cut because the new FY 13 advanced appropriations will not be subject to the sequester.

 

 


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