In a call with the League today, an official from the White House confirmed that the federal government will be reducing their committed payments on interest of the Build America Bonds. They are expecting the reductions to be about 9% below their original committment. These would apply across the board nationally. These cuts will be applied at some point between now and the end of the fiscal year, which ends September 30th. Local governments will be responsible for making up that lost revenue. The League expressed significant dissatisfaction on this policy decision on behalf of local communities around the state. The Administration said they are acutely aware of the problems this creates and are committed to reducing the impact of the sequester as the year goes on, and stated that they will not be including cuts to this program again in the future, even if another sequester were to take place.
Summer Minnick is Director of Policy Initiaves and Federal Affairs. She can be reached at 517-908-0301 or [email protected].