Grant Gazing this week is very significant because my topic concerns all of us who are either funded by federal and state grants, get clients through federal and state grants or receive services and programs from these sources. I recently attended a truly informative Federal Budget Briefing hosted by the Minnesota Council of Nonprofits. The session was an invaluable look at the ins and outs of preparing the federal budget and what the current proposed budget by the President means to us in Minnesota.

The following information was part of the “Federal Budget Outlook”, a presentation given by Martha Coven, Senior Policy Analyst from the Center on Budget and Policy Priorities in Washington, D.C.

The Federal Budget Calendar:

WINTER -The President sends his detailed budget request to Congress by the first week in February. The Senate and House consider the President's proposal and begin crafting their own budget resolutions.

SPRING - Congress finalize its budget resolution. The President's signature is not needed because it is not a law.

SUMMER - Congress begins consideration of individual appropriations, entitlement and tax bills.

FALL - Congress finalizes appropriations and other budget and tax bills, as the White House begins formulating its budget for the following year.

The budgeting process in Washington is often considered a bit “backwards” because appropriation amounts are set early on in the process and afterwards the in depth discussion occurs on distributing them. This means Minnesota nonprofit organizations need to be in contact with state and federal representatives now with any concerns over specific budget cuts or if they are planning to launch a new initiative that will need federal dollars.

Steve Francisco, Federal Policy Director for the Minnesota Council of Nonprofits gave the second part of the budget briefing. His presentation forecasted what the President’s proposed FY 2008 budget would mean for Minnesota. The following information is data from the Minnesota Budget Project and shows some disturbing program cuts over the next five years:

PROGRAM - CUT:

Child Care and Development Block Grant -$6 Million
WIC -$9 Million
Head Start -$27 Million
Public Housing Capital Fund -$36 Million
Community Services Block Grant -$40 Million
State and local Law Enforcement Formula Grants -$45 Million
EPA Clean Water/Drinking Water State Revolving Funds -$48 Million
Community Development Block Grant -$71 Million
Vocational and Adult Education -$71 Million
Low-Income Home Energy Assistance -$95 Million
Elementary and Secondary Education -$113 Million

* Data information presented was created relative to the current 2007 baseline funding level and was adjusted for inflation.

The predictions are based on no changes being made to the President’s budget which will not be the case as Congress is part of the budgeting process. However, it is a wake up call on how important it is to be engaged early on in the budgeting process.

If you would like to learn more the Minnesota Council of Nonprofits will be offering two budget webinars in April:

State Budget Basics - Thursday, April 5 (1 – 2 p.m.)
Federal Budget - Thursday, April 19th (1 – 2 p.m.)

For more information go to their website at www.mncn.org.