The details of the 2011 budget deal that averted a government shutdown were released early this morning. Compared to what was proposed in H.R. 1, the numbers are not as bad as feared. The entire international affairs budget – encompassing both State and USAID operations and programs – is $48.3 billion. That is about $500 million less than the FY2010 enacted level and $8.4 billion less than the 2011 request.
On the foreign operations side, cuts are made to nearly every account, but those cuts are not as deep as H.R. 1 or what many of us had anticipated, and some accounts will see small increases. Below are some of the highlights, although it should be noted that these figures do not include an additional 0.2% across-the-board cut to all accounts:
- The Global Health and Child Survival accounts total $7.845 billion, which is $66 million more than 2010 levels. The State Department’s portion would be $5.345 billion, or $14 million below 2010. USAID’s health account would increase by $80 million to $2.5 billion. The Global Fund for HIV/AIDS, Malaria, and TB would equal the 2010 level of $750 million. Clearly, White House and Congressional negotiators see the value in global health programs although it should be noted that funding for voluntary family planning and women’s health gets a $85 million cut.
- USAID’s Development Assistance account would receive $2.525 billion, an increase of $5 million from 2010 but a $456 million decrease from the request. At this level of funding, USAID will have to be judicious in its spending but should still be able to manage Feed the Future and other important programs. The agreement allows a $100 million contribution to the Global Agriculture and Food Security Program located at the World Bank.
- USAID’s Operating Expenses would be reduced by $39 million from 2010 and $122 million from the request. At $1.350 billion, the agency should not have to reduce its ranks, but it is unclear whether they will be able to bring in some of the new contracting officers and mid-level professionals as planned. Even so, this is much better than the $121 million cut below 2010 envisioned in H.R. 1.
- The Millennium Challenge Corporation is cut by $205 million from 2010 and $380 from the request of $1.280. At $900 million, the MCC is only slightly better than its 2009 funding level which means that some difficult choices will need to be made.
- International Disaster Assistance is funded at $865 million, a slight increase over 2010. This represents an enormous turn around from the H.R. 1 level of $429 million.
- The Economic Support Fund is funded at $5.958 billion, a slight reduction from 2010, but more than $1.8 billion below the request. While ESF is often allocated for strategic reasons, it also provides a large amount for development purposes.
What does all this mean? Well I think it’s clear that the value of development is becoming better understood on the Hill, if not perhaps within the rank and file then certainly among those who are writing and negotiating funding levels. This bodes well for looming 2012 budget debates, but continued support for the foreign operations budget should not be assumed. There is still room for a thorough scrubbing of accounts to determine their effectiveness and whether they support U.S. goals. Some of this has occurred in the 2012 budget request, but I think more can be done.Going forward, the debate will center on value for money and USAID’s ability to demonstrate that its evidenced-based approach is providing the focus and selectivity highlighted in the President’s Policy Directive on development.
